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PREFACE . . . vii 








VIII (Continued) 

FINANCE - - - 102 
DC (Continued) 

X (Continued) 





APPENDIX B - i 149 

INDEX 157 


THIS is an humble attempt at presenting a 
brief account of the administrative history of 
the Dominions of Hyderabad, from the time the 
Asaf Jahi dynasty was established here to the 
present day. 

When the Mughal Empire was passing 
through its days of turmoil, political disease 
and self-annihilation, Nizam-ul-Mulk strived 
hard to set things in order at the place of the 
central authority, viz., the Court of Delhi. It 
was in despair only, that he repaired to the 
Deccan, where he was formerly a Governor 
under the Imperial Rule, and where he, on his 
return, tried to catch the hearts of all the sec- 
tions of the people inhabiting the Deccan, and 
mould them into an independent body-politic, 
called the Dominions of Hyderabad. 

The legacy that he has left behind him to his 
successors runs in the following terms : 

4 'It behoves the Prince of the Deccan to be 
at peace with the Mahrattas, who are the land- 
holders of this territory. 


"Be careful how you destroy the human 
fabric, the Constructor of which is the God of 
all the worlds. The criminal who deserves to 
be put to death deliver over to the Qazi, who is 
the administrator of justice. 

" Be not a friend of ease and give not up 
travel, for on that depend many arrangements ; 
and consider that quarters are necessary for 
people's repose, and it is also well to station 
troops near their homes, so that population 
may go on, 

" Distribute your whole time, night and day, 
in the service of God, and the business of His 
people, and in relaxation, and never sit idle. 

"In important affairs ask the blessed inter- 
cessions of venerable and holy men. 

"Destroy no man's rights, and give to each 
servant his time of service, and after a year or 
so remove one man and appoint another, but do 
not appoint a mean man to do a noble man's 
work or vice versa. 

" Keep each man in his proper bounds, and 
look upon younger brothers as sons, and do not 
admit mean persons to your company or court, 
and do not relinquish the respect due to the 
Shadow of God (the Emperor), who is your 
'benefactor. Nadir Shah, the ruler of Persia, 
came to Delhi with overwhelming force, and 
through his excessive favour towards me 
showed inclination to bestow on me the Empire 


of India. I immediately said, 'We are servants, 
and I should become notorious for ingratitude, 
and Your Majesty would incur the odium of 
breach of faith/ Nadir was delighted, and 
applauded what I said. 

" As far as possible, do not take the initiative 
in war, not even if your adversary should be 
inferior to you. And when your opponent 
commences war against you, ask help of God 
and strive to repel him ; and seek not war with 
one who proposes peace/' 1 

This is a noble advice worthy of being follow- 
ed by every son of any ruler. 

After Asaf Jah, there came a period of 
turmoil when the State had to contend against 
the Mahrattas in particular, when the assistance 
of the East India Company was welcomed. But 
with this gesture at friendship the formation 
of the Hyderabad Contingent was invited or 
rather imposed upon. Both sides may have a 
case to press against each other. But to go into 
the details of this aspect of the history of 
Hyderabad is, however, outside the scope of 
this work. 

Hyderabad is an inland State, although it 
remains under a treaty still in force a sea-power 
admitting the Nizam's ships to fly their own 
flag on high seas, and also conferring on the 
Nizam the free use of the port of Masulipatain 

1 Hyderabad Administratoin Report, 1331 F. companion volume. 


on the east coast, but which right has not been 

exercised for a long time now. 1 

The country is mainly agricultural ; the chief 
staple being cotton and millet in the north, rice 
and oil-seeds in the south. The castor-oil of 
Hyderabad represents nearly sixty per cent of 
the world's total output of this important 
commodity. Hyderabad has also mineral re- 
sources. Coal, which is found in east and 
north-eastern tracts, is largely used on the 
southern Indian railways, and gold was worked 
till recently and is proposed to be worked again. 

Politically, Hyderabad is said to be an independ- 
ent treaty State, and the Nizam is its sovereign 
with feaudatory princes under him holding 
estates which in size, population and wealth 
are as important as many of the Indian States 
enjoying the honour of " salutes ". The Nizam 
has inherited the privilege of the Mughal Court 
to bestow titles of honour and distinction upon 
his subjects, and enjoys full powers of civil and 
criminal administration. He has his own High 
Court from which there is no appeal to the 
English Privy Council, but to his own Judicial 
Committee, after whose decision the ultimate 
and final appellate authority is the Nizam 
himself. He has his own Legislative Council 
with elected non-official representation in it, 
for purposes of legislative enactments. 

1 Commercial Treaty, dated I2th April 1802 A. D., Articles I & 2. 


The Nizam has his own currency, dating from 
the time of the mutiny when his coins ceased to 
bear the inscription of the Delhi Emperors. He 
has also his own postal service. 

A military establishment of considerable 
fighting value is maintained by the Nizam, 
which from time to time has rendered invaluable 
help at strategic moments in the life of the 
British Empire. 

Hyderabad has lived in troubles, such as 
other Indian States have not had the misfortune 
to feel, as the present writer has pointed out, 
here and there, in the following pages. But 
the qualities that endear the rulers of the State 
have prevailed upon ; so much so that conditions 
have so improved that, in every branch of 
administration, reforms have run on progressive 
and assuring lines. 

M, F. K. 


(1724 to 1761) 

THE administration of the country during 
the time of Nizam-ul-Mulk Asaf Jah not only 
extended over all the six subahs of the Deccan, 
but embraced the territory from the river Tapti 
to the frontiers of Mysore and the Carnatic, 
extending down to Trichinopoly. 

Asaf Jah was a paternal ruler of his people. 
From early morning every day, he attended 
personally till noon to Government business 
and looked into every detail of administration 
himself. After the afternoon prayers he held 
discourses with men of piety and learning in 
various branches of knowledge. 

He kept the control of the army and the 
nobles in his own hands by a system of grants 
of land, or money, in return for military 
service; and the civil administration of the 
Dominions was also conducted on the same 


By the year 1724 when Asaf Jah became 
independent of the Delhi Emperor, he had 
restored peace and order in the Deccan. He 
always looked to the well-being of those who 
happened to be his subjects. He made 
travelling easy and safe for traders, and took 
measures to afford relief to the peasants from 
the undue exactions of the Mahrattas by 
arranging payment of a fixed sum of money 
instead of the 'chouth' of the subah of 
Hyderabad and released the ten per cent 
taxation on the peasantry, called 'sardeshmukhi'. 
He further assured the peasantry that they 
would not be deprived of the fruits of their 
labour and stationed troops at vantage-points 
to keep off the armed bands of Mahratta 
freebooters. He regulated the system of 
Rahdari, a kind of transit duty which had 
been a source of great annoyance to travellers 
and the trading class. 

Asaf Jah re-organised thoroughly the revenue 
administration, which was in a hopeless 
condition, in such a manner as to stimulate the 
production of wealth, and thus endeavoured to 
bring in order the finances of the Deccan. 
He did not increase the burden of taxation on 
the peasantry ; on the other hand it was greatly 
reduced by his rigid supervision and by relentless 
punishment of those servants of the State who 
made dishonest gains by their exactions. 


passed to paradise" is the chronogram of his 

death. 1 

At the time of his death his rule extended 
from the Nerbudda to the Cauvery and from 
Masulipatam to Bijapur. Among the monuments 
constructed by him may be mentioned the 
fortification of Burhanpur which began in 
1716 and finished in his own time. The parapet 
walls of Hyderabad were also constructed by 
him. Asaf Jah showed a love for architecture, 
a tendency which has been inherited by our 
present great ruler who has so studiously 
ornamented the old Bhagnagar. 

Asaf Jah showed all along bold initiative 
in restoring order in the Deccan. He effectively 
checked the encroachments of the Mahrattas. 
By re-organizing the revenue system, as well 
as, by strict economy and care in the 
management of the finances, he made the 
country prosperous and the people contented. 

The death of Asaf Jah left his family in 
great disturbation. The domestic rivalry among 
his sons that continued for a dozen years or 
more on the one hand and the conflict of the 
interests of the English and the French who 

1 Hyderabad Administration Report, 1331 F. companion volume. 


were then struggling for the mastery of the 
south, on the other, kept Hyderabad in turmoil. 

Nasir Jung, the British partisan, being in 
command of the army seized the control of 
affairs, and appointed Shah Nawaz Khan of 
Berar, as his Minister, in 1748. Dupleix at 
this time gained a Brahman, named Ramdass, 
of Chicacole, in the confidence of Nasir Jung, 
and through him spread sedition in the army, 
which Dupleix called into operation by an 
attack on the camp, and Nasir Jung was 
treacherously murdered in 1750. ' 

Thereupon, his former rival, Muzaffar Jung, 
a grandson of the late Asaf Jah, was set up as 
Nizam with the help of the French. Ramdass 
was appointed Minister and given the title of 
Raja Raghunath Dass. But Muzaffar Jung 
was not destined to enjoy his power long. He 
was killed in a desperate personal encounter 
with the Nawab of Kurnool in 1751. 2 

The French then set up Salabat Jung, the 
third son of Asaf Jah, as Nizam. Salabat Jung 
allowed Raja Raghunath Dass to continue in 
office with full powers. The Raja employed in the 
State all the French who had followed Muzaffar 
Jung and most of the officers employed by him 
were also retained. Raja Raghunath Dass was, 

1 The Nizam, H. G. Briggs, vol. ii p. 56. 

2 Ibid, p. 57. 


however, slain by some discontented soldiers 
demanding arrears of pay in 1752. Syed 
Lashkar Khan, who succeeded him, held office 
for three years, when in 1755 Shah Nawaz 
Khan, who had served in the time of Nasir 
Jung as Minister, was appointed again to the 
post. Shah Nawaz Khan was an able 
administrator. He brought the affairs of the 
State, which were in a deplorable condition, 
into order. He subdued rebels, and people 
began to live in peace. In the very first year 
of his administration he is said to have equalised 
the expenditure with the revenue. 

When the Northern Circars were ceded to the 
French in 1753 by Salabat Jung, they made a 
complete survey of the territory, and a detailed 
account of the gross collections of all the 
districts was prepared, the annual assessments 
were regularly carried out, and peasants were 
protected from the rapacious zamindars. 

Shah Nawaz Khan was a devoted servant of 
his master and the State, and whenever he saw 
the interests of the country being sacrificed, he 
refused to be a party to unpleasant transactions, 
and the price he had to pay for his loyalty was 
his very life. For, he was treacherously 
murdered by a Hindu officer of the French in 
1758. 1 Shah Nawaz Khan, in addition to his 
ability as an administrator, was a scholar 

i The Nizam, H. G. Briggs, vol. ii, p. 134. 


well-versed in several branches of learning, and 
he possessed a wide knowledge of history. 

Basalat Jung, the Governor of Burhanpur, 
succeeded him as Minister. 

In 1761 Salabat Jung was dethroned, and 
Nizam Ali Khan, the fourth son of Asaf Jah, 
was proclaimed ruler of the Dominions. 

A curious feature about the history of 
Hyderabad is this, that Nasir Jung, Muzaffar 
Jung, and Salabat Jung, who all successively 
held power and ruled over the Dominions for 
some time or the other, have not been 
recognised as Nizams. 1 

1 Nasir Jung, 1748-1750. 
Muzaffar Jung, 1750-1751. 
Salabat Jung, 1751-1761. 


(1761 to 1803) 

WHEN Nizam Ali Khan assumed sovereignty, 
he made Vithal Sundar, a Brahman by caste, 
his Minister and gave him the title of Raja 
Pertabvant. This gentleman held office till 
1765, when he was slain in an encounter with 
the Mahrattas. 

Thereafter Mir Musa Khan, an intimate 
associate of the Nizam, who was well-acquainted 
with all matters of government and was on 
good terms with the leaders of the army, was 
appointed Minister. He was honoured with 
the title of Nawab Rukn-ud-Daula and was 
invested with the robes of office of Minister. 

The constitution of the State introduced by 
Nizam Ali Khan at this time was as follows : 

The Nizam was an absolute sovereign of the 
State. 1 

i The title of "Nizam" adopted by the rulers of Hyderabad came 
into use with the accession of Nizam Ali Khan. 


The civil officers were the Minister, the 
Peshkar, the State Record keepers, the Qazi, 
and the Kotwal. The Minister of the State 
was called the Dewan, and the whole 
administration of the Khalsa, with a part of 
the State army, was placed under him. In 
everything he did he first consulted and received 
definite orders from the ruler. It was through 
the Minister that all orders of the Nizarn were 
issued and published throughout the State. 

The military officers were the Mansabdars, 
the Paigah officers, the Jamadars, and the 
military cornmandents. The Paigah Amirs 
maintained army for the protection of the 
Nizam and the State, and obeyed the orders 
of the Nizam. They carried on the internal 
management of their estates independently. 
Some of the Jamadars and other military 
commanders were under the Minister and 
others directly responsible to the Nizam himself. 

There were also several Durbar officials 
whose offices were regulated by the traditions 
their ancestors had brought with them from 
the Imperial Court of Delhi, 

There was no separate department of revenue. 
Territories of land were made over to the 
nobles of the Court, or any one who applied for 
them on contract. These contractors, called 
Taluqdars, were, for the term of the contract, 
practically independent governors of the 


territory under them. They collected the 
revenue through their agents and forwarded it 
to the State treasury. They also retained 
troops to protect the Nizam's interests in the 
districts. The unit of revenue collection was 
the village, and the old time-honoured village 
officers called ' patels' and ' patwaris' continued 
to function their duties. The whole State was 
divided into three sections, namely, Khalsa, 
Paigah, Jagirat, and, later, Sarf-i-Khas. 

The administration of justice was based on 
the Islamic Law. 

The State Treasury was under the supervision 
of the Peshkar, checked and controlled by the 
Minister, and all accounts of the State were 
kept by the ' Daftardars '. 

The conferring of titles and distinctions and 
the bestowal of jagirs, mansabs, wazifas, and 
inams were the rights exclusively exercised by 
the Nizam himself. The appointments and 
dismissals of all civil and military officers of 
the State, and of the Court were made only 
under the sign manual of the Sovereign. 1 

It was after the earnest advice given at the 
time of his death by Rukn-ud-Daula to Nizam 
Ali Khan with regard to his extremely weak 
and critical position in relation to his army that 
the Nizam introduced the Paigah, or household 
troops, as a counterbalancing military strength 

l Qanuncha-i-Mubarik of 1310 II. pt. i. 


between himself and his troops ; and for the 
maintenance of this armed force he alienated 
large tracts of the country. 

Rukn-ud-Daula died in 1775, and after a 
lapse of three years during which period 
Nawabs Shams-ul-Mulk and Viqar-ud-Daula 
held office respectively, Arastu Jah, the 
Qilladar of Aurangabad at the time, was next 
appointed Minister in 1778. 

It was during the reign of Nizam Ali Khan 
that, after some dalliance with the French and 
their brilliant representatives, Dupleix and 
Reymond, he entered into an alliance with the 
English, resulting in many an important event, 
which, however, do not fall within the scope of 
the present subject. 

During the reign of Nizam Ali Khan no less 
than six treaties were made with the East 
India Company. 1 These treaties in their 

1 (i) Treaty settled by General Calliud at Hyderabad on i2th 
November, 1766, by which the Nizam ceded the Northern Circars to the 
Company, and they mutually agreed to assist each other with troops. 

(2) Treaty of Peace settled by Rukn-ud-Daula at Madras on 23rd 
February, 1768, confirming the stipulations of the Treaty of 1766, and 
providing that the Company should supply the Nizam with two 
battalions of sepoys whenever he should require them. 

(3) Treaty of Paungal, settled by Captain Kennaway on 4th July, 
1790, preparatory to Lord Cornwallis 1 war with Tipu Sultan. 

(4) Treaty of Hyderabad, settled by Captain J. A. Kirkpatrick on 
ist September, 1798, preparatory to Lord Mornington's war with Tipu 
Sultan, providing for the disbanding of the French Troops in the 
service of the Nizam, increasing the force subsidised by him from th 
British Government, and making it permanent. 

($) Treaty of General Offensive and Defensive Alliance, settled by 
Captain J. A. Kirkpatrick at Hyderabad on 1 2th October, 1800, by 
which the subsidiary force was further increased and territory ceded by 


immediate and later effects not only formed 
the basis of all subsequent dealings, but 
still govern substantially England's existing 
relations with the Court of Hyderabad. 

After a long and strenuous reign of over 
forty years Nizam Ali Khan died in the year 

the Nizam to the British Government in commutation of the subsidy 

(6) Treaty of Commerce, settled by Major J. A. Kirkpatrick, at 
Hyderabad, on lath April. 1802. 



(1803 to 1829) 

SIKANDAR JAH, the second and surviving 
son of Nizam Ali Khan, succeeded to the throne, 
and with him opened an entirely new era for 
Hyderabad. For the first time in the history 
of Hyderabad, an instrument from the 
Governor-General of British India was presented 
to Sikandar Jah upon his accession, confirming 
all agreements and treaties entered into with 
the late Nizam, and declaring that "the said 
engagements and treaties shall be duly observed 
until the end of time/' 

A year after the accession of the new ruler 
the Minister Arastu Jah died, and the 
appointment of his successor became a matter 
of great concern with the Government of India. 
Captain Sydenham, who was Resident at the 
time, insisted upon the appointment of Mir 
Alum, who had already distinguished himself 
in the service of the Nizam, 


The Nizam reluctantly consented to the 
proposal of the Resident, and Mir Alum was 
appointed Minister, though without the 
unlimited power enjoyed by his predecessor. 
In 1806 an excise employee of the Government, 
named Raja Chandulal was appointed Mir 
Alum's assistant under the designation of 
Peshkar, and the financial portion of the 
administration was entrusted to him. 

Having held office for four years during 
which he is said to have effected several 
reforms in the administration of the State, 
Mir Alum died in 1808. 

The expulsion of the French in 1798, followed 
by the new treaty arrangements, rendered the 
English influence in the administrative affairs 
of the State predominant. Although there was 
neither any provision in the treaties, nor any 
specific understanding between the two 
governments to that effect, yet it appears to 
have become the practice from this period 
onward that the appointment of Minister should 
be previously approved of by the British 
Government. That this was so is apparent 
from the following quotation from a minute on 
Hyderabad affairs written by Sir Charles 
Metcalfe (afterwards Lord) in 1829: 

4 'The Minister during whose administration our 
alliance with the Court of Haidarabad was formed 
and perfected was the celebrated Azimu-1-Umara 


Arastu Jah. He, however, was the Minister of the 
Nizam's choice, and whatever power he exercised 
was granted to him by his master, of his own free 
will. Entire confidence and mutual attachment 
existed between them, and it was not during the life 
of that prince that our influence was banefully 
exercised in the selection or support of a Minister. 

"From the time, however, of the completion of 
the subsidiary alliance, it seems to have been 
considered as essential that the Minister should be in 
our interests, and that we should support him with 
our influence. 

"The Nizam died before the Minister, to whom 
our support was continued, and then became 
efficacious. It does not seem to have been considered 
that the Nizam who succeeded could be allowed any 
option as to the continuance or removal of the 
Minister. Our Resident gave His Highness a clear 
understanding of what was intended, by observing 
to him, on his accession, that with such an ally as 
the British Government, and such a Minister as 
Arastu Jah, His Highnesses affairs could not fail to 

"Arastu Jah, accordingly remained Minister until 
his death, keeping his master, the present Nizam, 
during the whole time in thraldom and insignificance, 
totally devoid of power. 

"On the death of that Minister the Nizam 
announced his intention of taking on himself 
personally the management of the affairs of his 
Government. He naturally wished to avoid being 
again placed under a Minister independent of his 


" The arrangement, however, which he contemplated 
for his purpose was objected to by our Government. 
We insisted on the nomination of a Minister with full 
powers. We asserted the right of having a Minister 
attached to our interests, and, consequently, of 
selecting one of our own choice, and, if requisite, of 
enforcing his nomination. This extremity, however, 
was not necessary. Mir Alam, whom we selected, 
was appointed by the Nizam, and was sole ruler for 
life of his master's dominions. 

"The Nizam made some effort to obtain a share of 
power in his own Government; but this was 
unpalatable to the Minister, and the Resident gave 
decided support to the latter. The Nizam retired 
from the contest in disgust, and has never since 
taken any part in public affairs, but has led a life of 
gloomy retirement and sullen discontent. 

"Our influence, therefore, established the Minister 
&t Haidarabad as a despotic ruler, without the consent 
of his master. In all British interests he was 
subservient to the British Resident, and also in all 
private interests which the latter chose to advocate. 
In the management of the country the Minister was 
absolute, and had the support of the British 
Government against any opposition that he could not 
subdue with the means at his own disposal. 
Opposition to him was treated as hostility to us and 
disaffection to the English alliance ; and as his 
interests were, by our system, identified with our 
own, and our utmost influence exerted in his support, 
it was scarcely possible that his enemies should not 
become ours, although they might have been as 
willing as he to court our friendship, had we not 
made ourselves obnoxious to them by supporting the 


. , i . 11 "IN SiJfewltoddy MeE 

single individual against all competitors for power 

in the State." 1 

On the death of Mir Alum, the Nizam 
expressed his wish to carry on the administration 
of the State himself, but the Resident objected 
and pressed him to nominate a Minister. 
The Nizam carried on the administration for 
about six months, after which he appointed 
Munir-ul-Mulk, Minister. The new Minister 
was described as one " well acquainted with all 
affairs, and who would devote himself to the 
conduct of the business of his sovereign in the 
spirit of obedience to the orders with which 
he may be furnished for that purpose/' 2 
The Governor-General did not approve of 
Munir-ul-Mulk's appointment, and desired that 
Shams-ul-Umra should be made Minister. But 
the Nizam did not agree ; whereupon the 
Resident informed the Nizam that " whosoever 
should be Minister, it would be for the interest 
of the Company's Government that Chandu Lai 
should possess the largest share of active 
influence in the administration, and as long 
as he held a confidential situation about the 
Nizam we might always be assured of the 
security of British interests at the Court of 
Haidarabad." 3 

1 Historical and Descriptive sketch of H //. tke Ntzam's Dominions ^ 
S. H. Bilgrami and C. W. Willmott, vol. 2, p. 30. 

2 Ibid, p. 34. 
9 ibid, p. 35. 


Sir Charles Metcalfe, in the minute already 
referred to, wrote: " Muniru-1-Mulk was made 
Prime Minister, but it was stipulated that he 
should exercise no power in the State. All the 
power was to be given to the Deputy Minister, 
Chandu Lai, who was patronised by us." The 
new Minister is said to have been compelled to 
give an undertaking "that he would himself 
never aspire to any authority in the transactions 
of the State, and enter under an engagement 
to refrain from taking an active part in the 
affairs of Government." The Nizam never 
agreed to this arrangement to place the whole of 
the administration in the hands of Chandulal. 
But it was useless for him to attempt to curtail 
the power of an individual who, as Sir Charles 
Metcalfe remarked, "was established by the 
Company's Government as a despotic ruler 
without the consent of his master." 

Thus, the period during which Raja Chandulal 
was virtual Minister of the State and swayed 
power began from the time of the death of Mir 
Alum and lasted till the year of his resignation 
in 1843. 

It was in the year 1812 that Raja Chandulal 
established the force commanded by British 
officers, which subsequently grew into the 
Russell Brigade, after Mr. Henry Russell, the 
Resident, who took an active part in its 
formation, and then became the Contingent. 


Under Mr. Russell the Brigade grew into 
considerable size and was very expensive to 
the exchequer. Superfluous officers on huge 
salaries (the Commander alone drew 5,000 a 
year) were appointed by the Resident, although 
it was known to him that the finances of the 
State were unsatisfactory. As one appointment 
followed another, and fresh posts were created 
for new applicants, the proverbial expression 
current in Hyderabad was " Poor Nizzy pays 
for all/ 7 

The general administration of the State 
was being conducted primarily under the 
direction of the Minister. The ordinary 
routine was carried on by two offices, 
namely, ' Daftar-i-Mal ' and ' Daftar-i-Diwani ', 
and these were under the supervision of 
Daftardars, whose duty it was to keep State 
accounts and registers of grants of jagirs, 
and other similar official transactions. The 
correspondence of the Minister was attended 
to by a separate establishment known as 
'Dar-ul-Insha'. There was a sort of postal 
system borrowed from that of the Mughal rulers, 
but in a form not covering the whole of the 
Dominions. There were two courts of justice 
the Dar-ul-Qaza, and the Sadarat-ul-Aliya, 
beside the Kotwali, which was the police court, 
But in the taluqs there were neither public 
offices of any description, nor police nor courts 


of justice. In fact the Government then 
concerned itself with nothing beyond the 
collection of revenue. 1 

The revenue administration of the Dominions 
during the period of Raja Chandulal was of 
an extremely primitive type. Territories were 
farmed out to contractors, with almost no 
control over them, and they were required to 
advance a considerable portion of the anticipated 
revenue. These contractors were mostly 
Arab chiefs, Marwari sahukars and gay 
Mahants. Their only concern was to profit by 
their transactions. Consequently the revenue 
began to diminish considerably as time went 
on during the Raja's ministerial regime. 

Other minor sources of income, in addition 
to land revenue, were, more or less, like our 
present-day municipal taxes, such as Hatbazari 
(a cess on bazaars and fairs), Kalal-patti (a 
tax upon liquor vendors), Shadi-patti (a tax on 
weddings), Rahdari (toll-tax), Ghanim-bab (an 
impost for protection against enemy), Mohtarfa 
(house or shop tax) and similar other taxes. 

Another source of revenue was the sale of 
the right to coin money. At this period there 
were at least fourteen different kinds of coin 
current in the Dominions, and each one who 
held the right prohibited the circulation of any 
other coin than his own within his boundaries. 

i Hyderabad Administration Report^ 1331 F. companion volume. 


Such a complicated system of currency was a 
source of great annoyance, particularly to the 
agricultural population. ] 

Money was also raised from the Taluqdars 
and revenue farmers by bestowing titles upon 
them, for which honour they were expected 
to pay sums varying from one to two lakhs of 
rupees. 2 

The expenditure of the State was divided 
under the following three heads : 

(1) Minhai-az-Madakhil or abatements from 
receipts. Under this head were included all 
sums that the district authorities deducted 
from the receipts on account of the cost of 
collection of revenue, Sadir or contingent office 
expenses, Rusums (fees) of vatandars or taluq 
officers, Yeomiah and Saliahna, or the daily 
and yearly pensions, Dehsadirs, or village 
expenses, and such other charges incident to 
the administration of the districts. 

(2) Taluqa Mahalat, or districts assigned in 
lieu of cash payments. Under this head were 
debited the revenues of all territories set apart 
for the payment of military forces, mansabdars, 
and for the liquidation of debts. 

(3) Maqarij-i-Naqd az Qazana wa Mahalat, 
or the cash disbursements from the central and 
district treasuries. This head comprised of 

1 Historical and Descriptive sketch of H. H. the Nizam's Dominions^ 
S. H. Bilgrami and C. W. Willmott, vol. ii, p. 56. 

2 Ibid. 


allowance from the Diwani revenue to the 
Nizam, salaries of the Minister and Peshkar, pay 
of the army, Mansabdars, and Shagird-pesha or 
personal attendants, and other miscellaneous 
expenditure. 1 

In spite of raising revenue by so many 
methods, Raja Chandulal suffered the pay of 
the Contingent to accumulate into arrears, 
which was a continuous source of financial 
perplexity to him. 

In the meantime, a large banking house 
styled " William Palmer & Co/' was formed in 
Hyderabad by William Palmer, a retired 
servant of the Nizam's Government. This firm 
had as their partners Mr. William Currie, the 
Residency Surgeon, Sir William Rumbold, an 
intimate friend of Lord Hastings and a 
grandson of Sir Thomas Rumbold, the notorious 
Governor of Madras, as Briggs styles him. As 
the Imperial Act of 1797 2 laid down that no 
European should be allowed to have any 
financial transactions with Native States without 
the express sanction of the Governor-General 
in Council, the firm obtained a license in 1816 
from the Board of Directors of the Honourable 
East India Company to carry on their business 
as bankers, and to have pecuniary tansactions 
with the Nizam's Government, the only 

1 Historical and Descr.-flt.'ve sketch of H. //. the Nizam's Dtmimstis, 
S. H. Bilgrami and C. W. Willmott, vol. 2, p. 52. 

2 37th George III, Cap. 142, Sc. 28. 


reservation made being "that it should be at 
the discretion of the British Resident at 
Hyderabad, for the time being, to satisfy 
himself regarding the nature and objects of the 
transactions in which Europeans might engage 
under the permission accorded." 

Raja Chandulal arranged payments to the 
Contingent by borrowing sums from this firm 
at the usurious interest of 25 per cent, 
and whenever sufficient amount was not 
forthcoming, he used to fall back upon the 
resources of local money lenders who very 
often demanded securities of the administration 
of taluqas, and villages yielding over a lakh of 
rupees in revenue. 

In this way there arose a period of financial 
embarrassment which lasted throughout the 
ministry of Raja Chandulal, and threatened in 
the end to plunge the State into a condition of 

At this stage, Mr. Russell, the Resident, 
applied to the Governor-General for permission 
to interfere into the internal administration of 
the State. He suggested, as the leading 
features of a plan of reform, that "whatever 
control our Government might resolve to 
exercise should be applied through the medium 
of advice and influence, and not by direct 
exertion of authority ; that we should enlarge 
the sphere rather than increase the degree of 


our interference, exerting the same influence 
in correcting the abuses of the internal 
administration that we already applied to 
objects immediately connected with our own 
interests ; that we should improve and direct 
the implements of the country, and not introduce 
agents or regulations of our own." 

Lord Hastings,who wasthen Governor-General, 
approved of the Resident's proposal. Mr. 
Russell's scheme of reform of the administration 
consisted of the appointment of European 
officers in the districts, who prepared estimates 
of the village revenues, for the purpose of 
assessment, and prevented oppression and 
extortion which had previously prevailed. 
Attempts were also made to introduce some 
kind of judicial administration in the districts. 
But neither of these plans proved successful, 
as those who were in authority, while apparently 
acquiescing in all the Resident's proposals, took 
very good care to render them nugatory. 

" The whole system of administration", in the 
words of Sir John Kaye in his Life of Lord Metcaife, 
" was rotten to the very core, it was a congeries 
of diseases. Nothing seemed to flourish there 
except corruption. Every man was bent on 
enriching himself atthe expense of his neighbour. 
No one cared for the people, no one cared for 
the State. Every thing had its price in 
Haidarabad. If a man wanted a place he 


counted out his money to buy it, If a man 
wanted justice he bade for it as for any other 
marketable commodity. Every public officer 
in every department of the State was accessible 
to a bribe. But there were worse things than 
even these. A peaceful and industrial population 
was converted into rebels and bandits. Neither 
life nor property was secure. There was nothing 
left indeed but the name of Government, all 
the rest was lawlessness and confusion/' 

Such was the state of affairs towards the 
close of 1820, when, on Mr. Henry Russell's 
resignation, Sir Charles Metcalfe was appointed 
Resident at Hyderabad (1820-25). In the 
course of a few months after his arrival the 
new Resident studied the true position of 
affairs for himself, and found reforms in every 
department of the State, particularly the 
revenue, pressing in their need. In connection 
with the financial embarrassments of the State, 
Sir Charles Metcalfe is said to have inquired of 
Raja Chandulal how he intended to pay the 
local money-lenders. "Pay them?" retorted 
the Minister, " why, I don't mean to pay them 
at all. They have received interest over and 
over again, and I'll pay no more." Moreover, 
the Resident considered the existence of 
William Palmer & Co., with whom were involved 
the interests of so many of the British 
Government officers, as scandalous. 


He therefore set to formulate a scheme . for 
the improvement of the State administration, 
and the following extracts from his journal give 
an idea of the procedure he intended to follow, 
and the reforms he liked to be introduced into 
the State. 

"To require a statement of revenue and 
expenditure, from which to judge of their 
relative extent and the financial prospects of 
the Government. 

4 'To require a statement of Khalsa lands, 
revenues, and management, whether under 
farmers or collectors, or any other class of 

" To require a statement of lands in Jaghir, 
Jaidad, &c. 

"To require a statement of Jaghirdars of 
troops supported by Jaidad, and of personal 
Jaghirs to commanders. 

"To require a statement of pensioners, with 
the revenues or claims on account of which 
pensions have been granted. 

"To explain that information on all these 
points is required as necessary foundation for 

" To urge the Minister to discontinue on his 
own part, and to procure the discontinuance 
on the part of Muniru-1-Mulk, of all clandestine 
allowances to servants, &c., at the Residency. 
The same with regard to fruits, dinners, 


&c., &c., sent to the Residency, which co 
such quantities as to give them the appearance 
of regular supplies instead of being merely 

"To desire the Minister not to give ear to 
any natives who may pretend to have influence 
with me, either directly or circuitously, and to 
inform him that I shall never employ natives 
in any communication with the Nizam's 
Government. That ordinary matters will be 
discussed, as at present, by notes, and all of 
importance either personally or through one 
of my assistants. 

"I applied to the Minister for accounts of 
the income and expenditure of the Government. 
These, after requesting delay for time to 
prepare them, he brought to me in detail. 
From these, if they can be relied on; it appears 
that there is annual deficit of about ten lakhs. 
If the deficit do not exceed this amount, I shall 
not despair of bringing the finances of the 
Government into proper order in the course of 
time, either by ameliorations of the revenue, 
or by reductions of the expenditure, or the 
joint operation of both. 

" The measures which appear to me to be 
most essential in the first instance, and which 
I shall endeavour to carry into effect with the 
concurrence of the Nizam's Government, are 
1st. The reduction of the expenditure of the 


Government within its income. 2nd. A general 
settlement of the land revenue for a term of 
five years on the principle of a village 
settlement, including arrangements with the 
heads of villages for the introduction of a 
system of police. 3rd. The superintendance 
of respectable European officers of the Nizam's 
service for the purpose of preventing oppression 
and breach of faith in the districts in the 
vicinity of their respective posts/' 1 

To these proposals the Nizam and his Minister 
gave their consent, but Lord Hastings was, at 
first, much averse to the interference by the 
Resident into the internal administration of the 
Nizam, making, at the same time, a pointed 
reference to the desirability of retaining Raja 
Chandulal in office, "unless he shall be guilty 
of some distinct delinquency", and continued 
" you will please regard it as a special obligation 
upon you to support that Minister/' Sir Charles 
Metcalfe protested against "leaving the 
Minister to dispose of the revenues of an 
Empire without even submitting an account 
to his master, and without acknowledging 
responsibility to any one/' After a protracted 
correspondence, the Resident's proposal to 
introduce " some measures absolutely necessary 
for the ends of justice and the good of 

1 Historical and Descriptive sketch of H. H. the Nizam's Dominions* 
S. H. Bilgrami and C. W. WiJlmott, vol. ii, p. 82. 


the people " was approved of by the 
Governor-General . 

The village settlement, introduced by Sir 
Charles Metcalfe, was made only after finding 
out the existing productivity of each village, 
the average amount of revenue paid in the 
previous five years, and its productive capacity. 
For this purpose the country was divided into 
several districts, to each of which was appointed 
a British officer belonging to the Contingent, 
who was entrusted with the general supervision 
of the revenue assessment and police, the 
executive, however, being left to the subordinate 
officers of the Nizam's Government. 

"Our object", wrote the Resident in his 
instructions to these British off icers, " will be 
most effectually accomplished if we can save 
the people from oppression, maintain good 
order, promote prosperity, and at the same 
time uphold the Nizam's Government which it 
is our duty to support, and not to supersede or 
set aside, though it may frequently be necessary 
to check its oppression and oppose the extortion 
of its servants/' 1 Wherever introduced and 
carried into effect the arrangement proved a 
success, and the agricultural prospects of the 
St^te brightened. 

i The Nizam, H. G, Briggs, vol. 2, p. 97. 


The revenue of the State in 1821 was 
Rs. 1,89,33,550. ' 

Sir Charles Metcalf e then turned his attention 
to William Palmer & Co., which was now at 
the height of its power. They had gained a 
political force able to influence the policy 
of the State itself. The Resident tried and 
brought about ultimately an arrangement 
between the Nizam and the Board of Directors 
by which the Company's existence was made 

Raja Chandulal decried the benefits derived 
from the introduction of Sir Charles Metcalfe's 
reforms, and, when Mr. Martin succeeded the 
latter in 1825, the Raja persuaded him into the 
belief that the proceedings of the British 
superintendents in the districts were injudicious 
and distatseful to the people, and that the 
former Resident "had pushed his reforms and 
his interference in the administration of the 
country far beyond the limit contemplated by 
the Governor-General, for they amounted to 
taking the Government of the Nizam's 
Dominions into the Resident's own hands". 
Moreover, in 1826, instead of levying the 
increased rates which the improvement in 
cultivation warranted, the Raja proposed to 
continue the old assessment rates in the new 
settlement for five years which was about to 

l Historical and Descriptive sketch of H . H. the Nizam's Dominions > 
S, H. Bilgrami and C. W. Whlmott, vol. 2, p. 38. 


(1829 to 1857) 

SlKANDAR JAH was succeeded by his son, 
Nasir-ud-Daula, who, on his accession, requested 
the Governor-General to discontinue the civil 
interference began by Sir Charles Metcalfe. 
This step was probably taken on the advice of 
Raja Chandulal, who had long anxiously wished 
to recover the uncontrolled power he possessed 
before Sir Charles Metcalfe. As the views of 
the Cover nor- General, at the time, Lord William 
Bentinck, were that of non-intervention in the 
internal affairs of Indian States, instructions 
were issued to the Resident to withdraw the 
European superintendents. Acceding to the 
Nizam's request, the Governor-General wrote 
to him thus : 

" Nevertheless, as your Highness entertains 
the desire, worthy of a great prince, to take the 
government of your country into your own 
hands, I have most readily ordered the Resident 
to withdraw all interference on his part. Only 


it will be necessary that the fowls which have 
been issued with the cognizance of British 
officers and the confirmation of your Minister, 
be maintained inviolate. This is required by 
good faith. 

"In every other respect your authority will 
be absolute, whether in the selection or removal 
of ministers or other servants of the State, or 
in the administration of justice, or in revenue 
affairs, or in any other branch of the government 
of your country ; there shall be no interference on 
the part of this Government in your Highness' s 
affairs." 1 

The sudden withdrawal of these officers 
subjected the country into a state of 
maladministration once again, and the peasantry, 
who had enjoyed a respite of nine years, found 
themselves at the mercy of the turbulent 
zamindars. The affairs, not long afterwards, 
became so bad that, in a despatch dated 3rd. 
September 1835, the Board of Directors directed 
the Government of India to inform the Nizam, 
that they could not remain indifferent spectators 
to the disorder and mismanagement which had 
so long prevailed in his territories, and that if 
the present Minister would not provide for the 
proper and efficient administration of the 
country, it would be the duty of the British 
Government to urge upon His Highness the 

1 The Nizam, II. G. Briggs, vol. ii, p. 105. 


necessity of changing his Minister, as well as of 
adopting such other arrangements as might 
appear to be advisable for the purpose of 
securing good government. } It is to be noted 
here that the Governor-General, through whom 
this communication was made, was Sir Charles 
Metcalfe, the same erstwhile Resident who 
fifteen years ago had effected marked 
improvementin the administration of Hyderabad. 
He had succeeded Lord William Bentinck as 
officiating Governor-General in March 1835, 
and it is obvious that it was at his instance 
that the despatch which left London in 
September of the same year was sent. 

On receipt of this unexpected communication 
to His Highness, Raja Chandulal immediately 
professed the utmost readiness to accept any 
proposals, short of surrendering his control 
over the revenue, and himself proposed to 
revert to the Metcalfe system of supervision of 
the districts by British officers, or to appoint 
Indians of rank and respectability to furnish 
the Resident direct with periodical reports of 
the conduct of the taluqdars. But neither of 
these propositions met the approval of the 
Nizam, who was probably secretly tutored by 
the Raja to object to the proposals which 
he had himself, with his usual duplicity, 
recommended to the Government; 2 and finally, 

t The Nizam. H. G. Briggs, vol. ii, p. 106, 
2 /bid, p. 107. 

by way of a compromise, Ai 
appointed to the districts to act as a check 
revenue officers, and to administer justice. 

But this arrangement proved a complete 
failure, and benefited no one but the Minister, 
who by his seeming anxiety to meet the wishes 
of the British Government, and the specious 
proposal which he had induced the Nizam to 
adopt, evaded the storm which had been raised 
against him by the Board of Directors in regard 
to the character of his administration. * 

Raja Chandulal still continued, after the 
warning he had received, to be guided by no 
system of administration or plan of policy. 
Contrivance after contrivance, generally of a 
tendency to entail ruin on the resources of the 
country, was recklessly adopted for the purpose 
of supplying his immediate wants, and with a 
total disregard to the demands which were 
certain to be made upon him to meet the 
expenditure of the following year. ' ' Accidents ' ' , 
wrote Major Cameron, the Acting Resident, 
" seem to happen as if they were foreseen, and, 
by some means or another, year passes after 
year, and matters are nearly in the same state 
as before. 7 ' 2 

Grants of land were made so recklessly that 
subsequently the period from 1832 to 1839 was 

1 The Nizam, H. G. Briggs, vol. ii, p. 108. 

2 I bid. 


styled the prescribed period, and grants and 
sanads issued during this time were not held as 
proof of title unless corroborated by further 
evidence. 1 Persons offered to the Minister 
large sums as nazar for the privilege of farming 
out one or more districts. Indeed, more than 
often it happened that the same district was 
farmed out to more than one person, from each 
of whom a nazar had been received, so that it 
became a common saying in Hyderabad, and 
which is not infrequently referred to even today 
as proverbial of the regime of Raja Chandulal, 
that whenever an incumbent went out to join 
his district he rode with his back turned towards 
the head of his horse and his face towards the tail 
in order to see whether any further incumbent 
was trying to overtake him. 

Describing the condition of the country at 
this time in the course of a confidential letter, 
written to Lord Auckland, General Fraser, 
soon after his appointment as Resident at 
Hyderabad, says : " If your Lordship commands 
me to say whether any immediate suggestions 
have occurred to me in reference to the Nizam's 
dominions, the adoption of which might seem 
desirable, I am constrained to reply that, as 
long as Chandoo Lai lives, I apprehend little or 
nothing can be done. He is very old (between 
77 and 78) and in all human probability the 

i A History of tkt Dccc<in } ]. D. B. Gribble, vol. ii, p. 181. 


grave cannot be far removed from him. He 
has played the game of government long, and 
skilfully, a word which I use rather than ably, 
for I cannot ascribe to him genuine capacity, 
nor, still less, great talent. We have been the 
tools in his hand. Adriotly opposing the Nizam 
to us, or us at other times to his sovereign, as 
might suit the aim and object of the moment, 
he has contrived to keep the government or 
rather the dictatorship of the country in his 
hands for thirty years/' 1 

The revenue was persistently falling, and the 
cost of the Contingent had to be met. The 
Minister never took any action to avoid 
the serious complications of the future by 
demanding a cut in the upkeep of the 
Contingent, or towards eradicating corruption 
in the revenue yielding department of 
administration. As the years passed on and 
the administration continued to deteriorate, the 
Contingent payments fell into arrears and the 
embarrassments of the State reached a climax. 

Raja Chandulal did not find any new source 
of income to meet the situation as the revenue 
had already been forestalled for two years, and 
there was no hope of the Marwaris being again 
induced to rely on his promises. In this 
dilemma he proposed to borrow a crore of 
rupees from the British Government to be paid 

1 Memoirs and Correspondence of General James Stuart Ftaser, Col. 
H. Fraser, 2nd edition. 


by an assignment of 17 lakhs of rupees per 
annum in the revenue of the country. But on 
knowing that before the Governor-General 
could entertain the proposal, the whole financial 
position of the Nizam's Government was 
required to be examined, the Minister withdrew 
his proposal. He then applied to the Nizam 
for assistance, but having failed to prevail upon 
him to advance the funds requisite to extricate 
him from his embarrassments, which are stated 
to have been shown much below the real figure, 
and shirking to face the consequences, he 
resigned his office in the year 1843. 

The Ministers were paid by a commission of 
three annas on the rupee in the revenue of the 
State ; that is, for every rupee on the revenue 
that was levied for the Government, an 
additional three annas were levied for the 
Minister. In this manner, Mir Alum received, 
on an average, a commission of Rs. 17,18,344 
a year ; Munir-ul-Mulk, who was only a nominal 
Minister, received a fixed salary of six 
lakhs per annum ; Raja Chandulal received a 
commission on revenue, varying from four to 
five lakhs per annum. But this amount was 
considerably augmented by sums received in 
nuzrana. ] 

For a few months after the Minister's 
resignation the Nizam carried on the 

l The Nizam, H. G. Briggs. vol. ii, pps. \22 & 153. 


administration of the State himself, with Raja 
Ram Buksh, nephew of Raja Chandulal, as 
Peshkar and Nawab Siraj-ul-Mulk, a son of 
the late Minister Munir-ul-Mulk, as Vakil. 
Subsequently Raja Ram Buksh was entrusted 
with ministerial powers, which he held till 
about the end of 1846. 

At this time one Mr. W. Palmer, who had 
been a partner of the notorious banking firm, 
and said to have been well-acquainted with 
the affairs of Hyderabad, was commissioned 
by the Minister to suggest means for 
the improvement of the administration. He 
thereupon prepared an elaborate memorandum, 
which contained among others the following 
observations : 

"The first step to be taken would be that the 
Dewan should prepare a scheme of administration. 
This should be done independently of the counsel or 
instrumentality of the Resident, as otherwise the 
reforms would assume an especially English character, 
and as such would be distasteful both to the Nizam 
and his subjects. The Dewan, after having framed 
the scheme in conformity with the old laws and 
customs prevalent in this State ( of course, eliminating 
those abuses which have crept into them), should 
submit it to the Resident for amendment and 
approval. Should there be any difference of opinion 
on any matter, the question should be decided by 
reference to the established usage of India. In order 
that the Administration may be conducted according 
to the scheme to be devised, it should be expressly 
and clearly laid down that the Resident should have 


the right to interfere merely with the general 
provisions of the scheme, but that the Dewan alone 
should be competent to deal with the minor details, 
with this proviso, that if the conduct of the latter is, 
in any instance, scandalously wrong, the Resident 
may exercise his authority, even in matters of 
subordinate importance, or, if he thinks fit, get the 
Dewan removed from office. 

"The first object of reform is to reduce the 
expenditure within the bounds of the revenue, so 
that the latter may suffice for all the purposes of 
Government. With this aim, it will be necessary to 
reduce the larger establishments. But since the pay 
of these establishments is considerably in arrears, 
the Government cannot reduce them unless the 
arrears are first paid off. The Government, however, 
on its own credit, is unable to borrow money from 
any individual, and as a consequence it must look to 
the support of the East India Company. But the 
Company, having had experience of the fact that this 
Government cannot manage its affairs with economy 
and regularity, will not be disposed to lend a large 
amount, except npon a solid guarantee for its 
repayment ; and such a guarantee cannot be anything 
short of a cession of territory. I am afraid there is 
no escape from this condition. However much do 
I wish that His Highness's Government may be free 
from humiliation and indignity, taking into full 
consideration what is favourable and what is 
obnoxious to the interests of that Government itself, 
I think it best on the whole that some territory 
should be ceded. The security required before ways 
and means could be obtained in order to meet the 
expenditure of the State will be adequately provided 
for if full power and authority is given to the British 


Government over the revenue and expenditure of 
such assigned territory. If the Dewan desires to 
persue a policy of prudence and straightforwardness, 
he jwould adopt this course, and adhere to it till the 
entire debt of the Company was liquidated. By such 
a policy the restriction imposed on the free will and 
action of His Highness would, in process of time, be 
removed. But in the meanwhile it will be necessary 
to entrust to the Resident all the accounts, which are 
now in the hands of the Daftardars, and he should be 
allowed to call upon any one he likes to give him 
whatever information he requires. He should 
further bs made acquainted with the extent of the 
total liability of His Highness's Government, and 
should be apprised of the reductions effected in the 
expenditure of the State, in order that he may judge 
for himself whether they are sufficient to ensure the 
payment of all debts. As regards the revenue 
administration of the State, the powers of the 
Resident and the Dewan should be distinctly defined 
and separated. The power of appointing Talukdars 
and fixing the settlement should vest entirely in the 
Dewan. provided that in the former case His 
Highness's Government do not nominate any one as a 
Talukdar who has been charged by any of the 
preceding Residents with having practised oppression, 
or made unlawful demands. But the Resident will 
be entitled to remove a Talukdar whose conduct 
or behaviour appears, in his judgment, to be 
uusatisfactory. With regard to the settlement of 
revenue, the Resident will have the right to interfere, 
and alter or amend, through the instrumentality 
of some person (I should prefer, indeed, a joint 
committee of Englishmen and Natives), the 
assessment where he suspects that the rate has been 
fixed too low, In case the Resident finds that the 


low rate has been fixed mala fide he will appoint 
another Talukdar himself, and, further, it will be his 
duty to demand from His Highness's Government the 
dismissal of the official who has proved faithless to 
the interests of the State. Where the settlement has 
been enhanced the Resident will have no power to 
intervene. If the right of appeal be granted to everv 
taxpayer no one will pay his due without prefering 
an appeal, and thus the task of deciding such cases 
will become almost endless. But, notwithstanding 
this general prohibition, when the Resident comes to 
learn from independent and reliable sources that the 
assessment in a specified locality is excessively heavy, 
he may represent the matter to the Dewan, and the 
settlement may be revised in accordance with a 
mutual understanding between the Dewan and the 
Resident. When a Talukdar has been once definitely 
appointed he should not be removable from his post, 
unless the Dewan shows to the Resident that the 
dismissal of the officer is called for in the interests 
of the public weal, and is not prompted by the 
individual liking or displeasure of the Dewan. No 
bills should be drawn on the district revenues, but 
the whole of the revenue should be conveyed in cash, 
as realized, to the central treasury at the capital, 
under the escort of the force stationed in each district. 
The arrangement should be continued till some plan 
better than the present one of remitting the revenue 
by means of hundis, whereby the Government suffers 
a loss of 8 per cent., is adopted. All disbursements 
must afterwards be made from this central treasury. 
That the revenue may be easily remitted, there 
should be smaller treasuries throughout the State, 
subordinate to the central treasury ; but these should 
be located only in those places where cantonments of 
the Contingent force are situated, and the treasury 


officers must be officers belonging to that force. 
These treasury officers, selected from the Contingent 
force, will submit, through the Resident, monthly 
accounts to His Highness's Government, and will 
receive all orders from the latter through the same 
channel, which will afford satisfaction to them that 
the orders are correct and proper. The institution of 
these treasuries will have this advantage, namely, 
that they will supply the pay of the Contingent, 
and thus avert the loss which the Government now 
undergoes in the purchase of drafts. I have said 
that all orders on these subordinate treasuries should 
be transmitted through the Resident, but I hope they 
may not be so large as to drain these treasuries too 
low to render them capable of meeting the monthly 
charge on account of the pay of the Contingent. 

11 Of all the departments of the State, retrenchments 
must first commence in the military department, 
which is not only one of the most extensive 
establishments, but is the cause of a severe drain on 
the resources of the Government. It is the chief 
source and fountain to which almost every form of 
the prevailing maladministration is traceable. It 
ruins the country, dissipates its revenues, and 
oppresses the people. I am informed that the total 
value of personal jagirs amounts at present to twenty 
lakhs of rupees a year. This sum should be reduced 
to one-half, including jagirs assigned to persons 
attached to the Court, and to meritorious servants of 
the Government, who are subject to the orders of the 
Dewan, I have no authentic information on the point 
I am dealing with, but I must say, from what I know, 
thst the existing number of jagirs must be curtailed, 
that they should be assimilated with ordinary private 
property, that no changes should be introduced into 
them from time to time, and that none of them should 


be under six thousand rupees in value. But though 
they are to be considered in the nature of private 
property, under no condition are they to be allowed 
to be mortgaged. The authority which the Jagirdar 
exercises over his tenants is already so extensive in 
its character that he ought not to be further 
empowered to hand them over to the tender mercies 
of other masters, on the strength of a mortgaged 
deed. When proper courts of justice have been 
established, it may be hoped that the debts incurred 
by Jagirdars will be dealt with in the same way as 
debts by other individuals, and it will be possible 
then to frame some provision whereby a jagir may, 
under the sanction of Government, obtained in 
consonance with a decree of a court of law, be 
confiscated till a debt due by the Jagirdar is 

"There cannot be a more useless institution than 
that of the Mansab, as it exists. If it be placed, 
however, on a better footing, it may yet prove 
considerably beneficial to the State. Looking to the 
prevailing condition of affairs, its retention and 
continuation is decidedly imperative. It is, in its 
origin, a peculiar institution, connected with the 
courts of Indian princes. Those who are admitted 
into it rank as servants of the Court to which they 
are attached, have the privilege "of being near the 
prince and of attending his levees, become acquainted 
with the Dewan, and, when fit, are among the 
persons chosen for the service of the Government. 
But, in order that this scope may be adequately 
realized, men who enter the Mansabdari ought to be 
respectable and accomplished. This condition it is 
far from possible to comply with in this State at 
present, but it may become gradually practicable. 


The chief thing to be borne in mind here is to take 
care that those who belong to the upper classes get a 
livelihood from the State, for from ages past they 
have been in the habit of receiving, generation after 
generation, their maintenance from its princes 
without reference to their individual abilities or 
qualifications, and have never been required to seek 
their bread elsewhere. The inevitable result has been 
that though the first men who had been made 
Mansabdars had been probably selected on their 
merits, their descendants, though not unfit for their 
position ( for the little of Mansabdar is synonymous 
with that of a gentleman ), are really of no practical 
use whatever. The Mansab establishment, I think, 
should be altogether abolished, neither ought the 
number of Mansabdars to be reduced, nor, as long as 
circumstances continue as they are, should a change 
or diminution be effected in their status. I am given 
to understand that the salaries of the Mansabdars 
are not fixed upon a definite scale or proportion. 
Some there are who get rupees fifteen a month, and 
others who receive so much as Rs. 500 per mensem. 
No alteration must be made in these individual 
salaries, but the retrenchments that are called for 
must be divided over all. Lastly, the Mansabdars 
should get their pay not according to what they are 
entitled to according to the Government records, but 
according to what they have been receiving from the 
Sheristadar. I hear that the total expenditure 
under the head of Mansab amounts to eleven lakhs 
of rupees annually. By payment according to the 
custom, and not according to the record, and by 
other necessary reductions, the expenditure will be 
brought down to six lakhs. In my opinion, a larger 
sum than this should not be alloted for this purpose. 
Change of times and manners will, however, render 


it possible to effect further saving in this department, 

so much so indeed that the word Mansabdar may 

cease altogether to signify a public servant without 

any work to perform. I will repeat that Mansabdars 

are really people belonging to the most respectable 

class of society. In fact they are in Haidarabad 

what the middle class is in England." ] 

What steps were taken on this report of Mr. 

Palmer is not known to the present writer ; but 

Raja Ram Buksh, who was responsible for it, 

did not stay long afterwards in his office and 

was succeeded by Nawab Siraj-ul-Mulk in 1846. 

The new Minister endeavoured to lessen the 

drain on the State revenue by ordering the 

disbandment of Arab employees, who were at 

this time 5,747 in number, and by releasing 

lands from Jamadars, but his plans were 

thwarted by these turbulent people. He 

proposed to pay the Taluqdars fixed salaries, 

instead of commission which was 92 to 

12 per cent, from the collections. These 

officers, moreover, were to reside in their 

districts instead of at the capital, and those 

corrupted were removed from service. On his 

recommendation, the Nizam prohibited Satti 

throughout his Dominions, for which act the 

then Viceroy, Lord Hardinge sent a letter of 

appreciation to the Nizam. 

At this time an attempt was made to start a 
State Bank, with a European gentleman, named 

1 Historical and Descriptive sketch of //. H. the Nizam's Dominions, 
S. H. Bilgrami and C. W. Willmott, vol. ii, p. 100. 


Dighton, to whom some districts had previously 
been farmed out, and some of the local bankers 
as its promoters, but the project failed for 
want of proper support. 

The Minister then proposed, in consultation 
with General Fraser, the Resident, to appoint 
Mr. Dighton as the Commissioner of one of the 
districts which it was intended should serve as 
a model for the revenue administration of the 
whole country. But the Government of India 
objected to this proposal, in spite of its having 
been recommended by the Resident. Its sequel 
was the letter, addressed privately to Sir 
James Lushington, the Chairman of the 
Board of Directors of the Hon'ble East India 
Company, by General Fraser, which reads 
as follows : 

" Improvement in Hyderabad has not progressed. 
I lament that such should be the case as there is no 
inherent necessity that it should be so. A little 
decision on the part of the supreme Government and 
its assent to what I recommended would have been 
sufficient. It is to this subject I wish to attract your 
attention and to obtain if possible the assent of the 
Court to some policy of their own devising, if not of 
mine, which may correct the evils of this Government, 
in the shame of which I may perhaps be made to 
participate, though I do not deserve it. I wish to 
induce the Court either to act with some vigour in 
this matter, or to acknowledge that they do not care 
to save the Nizam, and that he must be considered 
as bearing the exclusive responsibility of the ruin to 


which the Hyderabad State is hastening. The 
proceedings of the Resident here, to that extent only 
which has been sanctioned, cannot be of any use. 
A higher tone must be adopted to be of service. 
A continuous of its present course by the supreme 
Government will involve this country in the fate 
of Mysore* 

"We are bound under the obligations of treaties to 
maintain the independence of this and several other 
native states, and until the treaties are infringed by 
the princes themselves, or the safety of our own 
provinces is in danger, we are bound to uphold them. 
All that I wish is that this should be done effectually, 
and in such a manner as to be at once consisting with 
the prosperity of a native state and with the general 
advancement of the Indian Empire in the path of 
good order and reform. It is not possible that so 
large a portion of India should be in bad way without 
the adjacent districts being injuriously affected. We 
can adhere to our treaties in perfect good faith, and 
yet insist at the same time that the sustained 
independence of Hyderabad shall not impede the 
equally sacred obligations under which we are placed 
not to allow our military protection of the Nizam to 
involve, as a necessary consequence, the misery and 
helplessness of his people. We must not allow a 
barrier to be raised against the advancement of India 
in general in the ill-regulated condition of this 
particular State. In the measures I have continuously 
proposed, the ulterior object has not only been a 
better administration for Hyderabad, but beneficial 
results for our own territory. Unhappily, in almost 
all instances, I have been prohibited not only from 
active interposition but from interposition at all. I 
need not enter into particulars. The evils of the 
Hyderabad Government and the state of disorder 


generally prevailing through the country must have 
been sufficiently well known at the Court of Directors 
when I was sent here by Lord Auckland. These 
evils continue as they were to this day. Can it be 
the intention of the Court that they should remain 
so until some crisis arrives, which may afford a 
pretext for placing the Nizam's country under a 
Commission, with our train of English judges and 
collectors ? I cannot believe this to be the intention 
of the Court, and, if not, surely means ought to 
be adopted which may avert these consequences. 
Correction becomes more difficult by every day we 
remain inactive. The Government of India has in 
general expressed its concurrence in my views and 
wishes regarding the Nizam's affairs, but not in the 
measures which I have recommended as alone likely 
to accomplish those views. If my suggestions had 
been objectionable, let others be brought forward. 
Let me be favoured with commands, which I promise 
to execute, but let not the only commands be to do 
nothing. This deliberate inaction appears to me to 
be as dishonourable to us as it is injurious to the 
Nizam." 1 

There can be no doubt, as General Fraser 
argues here in support of his advocacy for 
interference that, the financial embarrassments 
had commenced with the necessity of providing 
funds for the maintenance of the Contingent, a 
British ingenuity, and for which purpose things 
were done that were far from being conducive 
to good administration. 

1 Memoirs and Con csfondeiice of James Stuart Fraser, Col. H. Fraser, 
2nd edition. 


which the Hyderabad State is hastening. The 
proceedings of the Resident here, to that extent only 
which has been sanctioned, cannot be of any use. 
A higher tone must be adopted to be of service. 
A continuous of its present course by the supreme 
Government will involve this country in the fate 
of Mysore. 

" We are bound under the obligations of treaties to 
maintain the independence of this and several other 
native states, and until the treaties are infringed by 
the princes themselves, or the safety of our own 
provinces is in danger, we are bound to uphold them. 
All that I wish is that this should be done effectually, 
and in such a manner as to be at once consisting with 
the prosperity of a native state and with the general 
advancement of the Indian Empire in the path of 
good order and reform. It is not possible that so 
large a portion of India should be in bad way without 
the adjacent districts being injuriously affected. We 
can adhere to our treaties in perfect good faith, and 
yet insist at the same time that the sustained 
independence of Hyderabad shall not impede the 
equally sacred obligations under which we are placed 
not to allow our military protection of the Nizam to 
involve, as a necessary consequence, the misery and 
helplessness of his people. We must not allow a 
barrier to be raised against the advancement of India 
in general in the ill -regulated condition of this 
particular State. In the measures I have continuously 
proposed, the ulterior object has not only been a 
better administration for Hyderabad, but beneficial 
results for our own territory. Unhappily, in almost 
all instances, I have been prohibited not only from 
active interposition but from interposition at all. I 
need not enter into particulars. The evils of the 
Hyderabad Government and the state of disorder 


generally prevailing through the country must have 
been sufficiently well known at the Court of Directors 
when I was sent here by Lord Auckland. These 
evils continue as they were to this day. Can it be 
the intention of the Court that they should remain 
so until some crisis arrives, which may afford a 
pretext for placing the Nizam's country under a 
Commission, with our train of English judges and 
collectors? I cannot believe this to be the intention 
of the Court, and, if not, surely means ought to 
be adopted which may avert these consequences. 
Correction becomes more difficult by every day we 
remain inactive. The Government of India has in 
general expressed its concurrence in my views and 
wishes regarding the Nizam's affairs, but not in the 
measures which I have recommended as alone likely 
to accomplish those views. If my suggestions had 
been objectionable, let others be brought forward. 
Let me be favoured with commands, which I promise 
to execute, but let not the only commands be to do 
nothing. This deliberate inaction appears to me to 
be as dishonourable to us as it is injurious to the 
Nizam. " l 

There can be no doubt, as General Fraser 
argues here in support of his advocacy for 
interference that, the financial embarrassments 
had commenced with the necessity of providing 
funds for the maintenance of the Contingent, a 
British ingenuity, and for which purpose things 
were done that were far from being conducive 
to good administration. 

I Memoirs and Correspondence of James Stuart Fraser, Col. H. Fraser, 
2nd edition. 


About this time the relations between the 
Nizam and his Minister became strained, and 
so Siraj-ul-Mulk resigned in 1848. Then 
Amjad-ul-Mulk and Nawab Shams-ul-Umra, an 
uncle of the Nizam and a Paigah Amir, 
consecutively held the office of Minister and 
vacated within a year, when in 1849 Raja Ram 
Buksh was made Peshkar, and was also made 
responsible for the administration of the State. 

Mr. Dighton, already referred to, was now 
in the private service of Nawab Siraj-ul-Mulk, 
and since he had the opportunity of knowing 
things first hand during the Nawab's ministerial 
regime, he prepared a report dealing with 
the administrative condition of the State, in 
September 1849, from which excerpts are given 

"The territories of His Highness the Nizam 
yield about two and a half krores of rupees, which 
are supposed to be absorbed in the following 
proportions: Speaking: in round numbers, I should 
say the Khalsa may be estimated at one and a half 
krores. Jagirs, fifty lakhs. The Sarfkhas, districts 
under the immediate management of the Nizam 
paying their revenue to his Private Treasury, forty 
lakhs. Taluks for the Paigah troops, ten lakhs. 
Total two hundred and fifty lakhs of rupees. 

"The expenses of the State are carried on, 
nominally, from the Khalsa revenue, Rs. 1,50,00,000. 


The expenditure may be reckoned as follows : 

Troops, Horse and Foot ... ... 73,00,000 

Mansabdars (or officers, Civil and 

Military, attached to the Durbar) ... 12,00,000 
Servants of the Nizam ... ... 5,00,000 

Charges on Government Establish- 
ments of elephants, horse, &c. ... 5,00,000 

Allowances to the Nizam, his family 

and household ... ... 25,00.000 

Contingent ... ... ... 40,00,000 

Charges on collecting revenue, say 
2 annas in the rupee ... ... 20,00,000 

Rs. ... 1,80,00,000 

leaving a deficiency of thirty lakhs, besides the 
interest payable on the debts of the State for money 
borrowed ( arrears of pay due to the troops not 
being chargeable with that extra demand), which 
may be estimated at an annual charge of seventy 
lakhs. The Jagirs 50 lakhs, Sarf khas 40 lakhs, and 
Paigah 10 lakhs, are supposed not to be available 
towards meeting the current expenditure of the 

"The probable amount of the State debt, as 
demanded by its creditors, I may venture to state 

as follows: 

Sahukars, Talukdars, Arabs and other 

creditors ... ... ... 1,25,00,000 

Residency Treasury ... ... 60,00,000 

The Nizam ... ... ... 2,00,00,000 

Arrears of pay to the Troops, say 
on the whole an average of li years. 1,10,00,000 

One year of anticipated revenue ... 1,50,00,000 

Rs. ... 6,45,00,000 


" On emergencies, money is found from the 
following sources :-His Highness assists from his 
private treasury, as in the instances of money 
advanced by him to Maharajah Chandu Lai and to 
Raja Ram Buksh during their administration. Forced 
loans are exacted from Talukdars ( or collectors of 
Revenue), who, being already in advance to the 
Government, make the additional advance, as being 
more profitable to themselves than would be the 
resignation of their employment. Sahukars are also 
called upon to assist the Government, and they too 
lend their money rather than subject themselves to 
becoming marked men by the Minister, to whom they 
look for protection in their pecuniary dealings with 
others, and a noncompliance with whose wishes 
would certainly be followed by a withdrawal of his 
support. Gratuities are demanded from Jagirdars, 
who, I think, are equally called upon for the value of 
one year's income of their Jagirs, once in every 
five years. 

"Nazranas are of some assistance to the coffers of 
the State, though but a small portion of the assessed 
and paid amount finds its way there. Escheats are 
also of assistance, and as the Nizam is heir to all his 
subjects, many of whom are wealthy, valuable 
property occasionally falls to his hands, but in 
Nazaranas the greater portion of the value of such 
escheats is absorbed by others. These extra items 
are appropriate towards silencing the most important 
demands, and reduce their amount without showing 
how the decrease has been effected ; they are not 
exhibited in the accounts furnished, and hence the 
extraordinay appearance they make of not showing a 
proportionate increase of debt, which would otherwise 
be the case with the annual excessive expenditure of 
fifty lakhs of rupees- 


"The Nizam obtains the credit of assisting his 
Minister, and immediately replinishes his private 
treasury by the revenues of the Sarfkhas, which 
ought to be part of the Government revenue. The 
Talukdars meet the extra demands on them, secure 
themselves extra profits for so doing, and recover 
the money with all possible expedition from the 
districts under their charge. The Sahukars do the 
same, get assignments on Talukdars of their own 
recommendation, and get the Government to become 
responsible for the payment of their demands on 
some of their debtors, from whom they cannot 
recover their claims. The Jagirdars immediately 
assess the sums paid to the Government on the ryots 
and others in their Jagirs, as an extra demand 
from them. And with regard to Nazranas, I will 
venture to say that no man ever paid one rupee 
under that name that did not speculate on covering 
it tenfold, either by speculation or downright 
oppression. The Government claim on escheats is, 
of all the above, the least objectionable source of 
revenue, and that is quite as much as can be 
said in its favour. The Paigah Troops are under 
Shamsu-1-Umara, who is too powerful to be forced to 
make advances. The retaining of these troops is a 
source of great profit to him, and being employed in 
his own Jagirs and about his person they are useless 
for any purposes of the State. Maharajah Chandu Lai 
would occasionally get a couple of lakhs from him by 
throwing out hints that he intended to order a 
muster of the troops, which Shamsu-1-Umara, 
understanding, always evaded by a pecuniary 
advance. I do not believe that there is a single 
department in the Nizam's Government, civil or 
military, which is not corrupt, and in which extensive 
reductions may not be made to the great advantage 


of the State, not only reducing its expenditure but 
adding to its efficiency. The only department which 
requires an increased expenditure is the judicial, and 
that demands to be altogether reorganized. The 
Mansabdars are supposed to be men of learning and 
ability attached to the Court, to be employed by it on 
various duties that may present themselves ; they 
number, I believe, about two thousand, and cost the 
State annually twelve lakhs of rupees. I would not 
say that amongst so many there are not some worthy 
of their emoluments, but I really do not know one 
that is so. As a body the Mansabdars are the most 
worthless rabble, who obtain their appointments by 
presenting Nazaranas. 

"The assets of the Government may be put down 
as follows: 

Khalsa ... ... ... 1,60,00,000 

Jagirs ... ... ... 25,00,000 

Paigah ... ... ... 5,00,000 

Sarfkhas ... ... ... 40,00,000 

Rs. 2,20,00,000 


Troops ... .. 38,00,0000 

Servants of the Nizam 
Elephants, &c. ... 
Nizam and family 


Charges for collection of Revenue 20,00,000 

Rs. 1,62,00,000 

leaving a surplus revenue of fifty-eight lakhs of 
rupees, besides such increase as may be anticipated 


will accrue from a better arranged civil administration, 
and which may safely be put down as an offset to the 
interest chargeable on the liabilities. 

"The one will increase and the other decrease 
annually, and as these two items cannot form a 
regular debit or credit in an estimate, they may be 
allowed to balance each other during the period that 
may elapse prior to the State becoming free. 
Allowing the liabilities of the Nizam's Government 
to be to the full amount I have estimated them ( they 
are certainly not more ), it would require eleven years 
to extricate the State from its present difficulties. 
A searching and just inquiry of the fairness of those 
demands would be of a primary and urgent importance. 
These debts have certainly increased since Maharajah 
Chandu Lai retired from office, but in his time they 
were supposed to exceed two krores of rupees, and 
he declared that the command of one krore would 
enable him to settle accounts finally with every 
creditor of the State/' 1 

Mr. Dighton's report concluded with a 
recommendation that the State should be placed 
under the complete control of the British 
Government until its liabilities were cleared 
off and an efficient system of administration 

In 1851 Siraj-ul-Mulk was re-called to his 
office as Minister, and during the two years of 
his second tenure he tried to mend matters, but 
the financial situation had become so aggravated 
that hardly any time was left for him to think 

1 Hts*onca? amt D^cnptivt sketch of II . H. the Nizam's Dominions, 
S. H. Bilgrami and C. W. Willmott, vol. ii, p. 64. 


of internal administration except the vexacious 

problem of the liquidation of the Contingent 


In the year 1852 the expenditure exceeded 
the revenue of the State by over thirty-one 
lakhs, as represented in the statement of 
income and expenditure given below: 
Heads of Income 

Rs. Rs. 

Tankha Taluks of the Haidar- 

abad and Bidar Subas ... 28,09,544 

Tankha Taluks of the Berar, 
Bijapur, and Aurangabad 
Subas ... ... 14,84,436 

""" 42,93,980 

Taluks under Divani Amils in 
the Haidarabad and Bidar 
Subas ... ... 63,59,661 

Taluks under Divani Amils in 
the Berar, Aurangabad, and 
Bijapur Subas .., .,. 53,72,445 

Total Rs. ... 1,60,26,086 

Heads of Expenditure 

Rs. a. p. 

1. Sibandi, Sadir, Rusum, Yomiah 

and other stipends ... 21,86,420 00 

2. His Highness's privy purse, 

allowances to His Highness* 

relatives and establishment. 25,25,140 4 
8. The Honorarium paid to the 

Divan or Minister ... 3,00,000 00 

4. Troops ... ... 81,71,479 14 3 

5. Mansabdars ... ... 12,13,595 13 

6. Other stipends ... ... 1,04,709 33 


Ra. a. p. 

7. Judicial ... ... 48,108 

8. Troops attached to Talukdars. 14,340 

9. Guards in Forts ... .. 57,123 12 3 

10. Menial servants ... 

11. Yomiahdars and other Sti 


12. The pay of the Contingent 


1,91,411 5 3 

Total Rs. ... 1,91,57,019 O 1 

Siraj-ul-Mulk tried his utmost to meet the 
demands of the Contingent, and he did partially 
liquidate the outstanding debt, but the British 
Government was not satisfied and continued to 
press the Nizam for full settlement. 

At last the treaty of 1853 followed, and the 
Minister was so much mortified at the terms of 
it that, strange enough, he died three days 
after it was executed. 

On Siraj-ul-Mulk's death, his nephew, Salar 
Jung, who had been associated with his uncle 
in the management of his estate for some time 
previously, was appointed Minister by the 

1 Historical an/ Dcsc rift vj sketch ofH. //. the Nizam's Dominions, 
S. II. Bilsrami and C. W. \Villmott, vol. ii, p. 73. 


(1853 to 1883) 

THE condition of Hyderabad at the time of 
the appointment of Sir Salar Jung was no better 
than what it had been before. Whatever source 
of revenue there was it had already been deple- 
ted in the time of the previous Ministers. Indeed, 
the credit of the Government had fallen so low 
that even a loan of a thousand rupees could not 
be raised without much persuasion and security. 
He wrote to Mr. Dighton, referred to already, 
"I shall, nevertheless, do my best, with God's 
help, to restore order in the affairs of this 
country, and endeavour to extricate the Govern- 
ment from its embarrassments." 1 

It was, indeed, a stupendous task that faced 
Sir Salar Jung to inaugurate a perfectly new 
system of administration, under which the 
elementary rights of the people could be 
safeguarded and the prestige of Government 

1 Historical and Descriptive sketch cf H. H . the JV^am^ s Dominions, 
S. H. Bilgrami and C. W. Willmott, vol. ii, p. 112. 


raised. This was altogether a new idea, rather 
foreign to the old conservative mind of 
Hyderabad to have anything like an organised 
administration. As we have noticed previously, 
there was not at the time a shadow of any civic 
rights in the enjoyment of the people of the 
State, nor any systematic method of adminis- 
tration. Added to this, at the time when Sir 
Salar Jung came to the helm of affairs he had 
no personal influence with the Nizam, and 
he wrote to Colonel Low, the then Resident at 
Hyderabad: "You are aware that Burhan-ud- 
din is my medium of communication with the 
Nizam, and he is the only man who has influ- 
ence enough with His Highness to persuade him 
to consent to my measures." 

The money-lending classes, the Arabs, the 
Rohillas, and the Manvari Sahukars still held 
the key to the situation. The secret of 
Sir Salar Jung's success lay in the fact that no 
sooner he assumed the office than he enlisted 
on his side these sinister sections. 

The progress of Sir Salar Jung in the deve- 
lopment of a system of administration may fall 
under three periods. 


Since the principal source of income to the 
Government was the land revenue, and realising 


that the whole chaotic state of administration 
was largely due to the previous erratic revenue 
system, Sir Salar Jung abolished the farming 
out of revenue to money-lenders. These old 
taluqdars were gradually dismissed and new 
officers, still styled taluqdars, were appointed 
in their stead and provided with a staff of 
subordinates chosen by Government, with fixed 
salaries from the Government exchequer. The 
duties of these officers were well defined and 
they were held responsible directly to the 
Government. The peasant, no longer oppressed 
by fraudulent taxation, was able again to make 
a living by cultivating the land, and deserted 
villages became inhabited once again. 

The creation of a regular and effective police 
force was long-needed throughout the State, 
and a beginning was now made. A number of 
sepoys were allowed to exercise under the 
supervision of each taluqdar the functions 
of police, and a force, known as the 
Jamiat-i-zniadari t was formed and placed under a 
number of zuiadars, whose duty it was to keep 
order and peace in the districts. A Central 
Committee consisting of a President and four 
members was formed to attend to this duty in 
the capital city. 

The next important administrative measure 
was to afford and guarantee to the people 
justice and redress, and for this purpose 


Munsifs and officers holding the rank of 
a Mir-e-Adai were appointed throughout the 
Dominions to attend to civil and criminal cases. 

A Government central treasury was esta- 
blished in the city in 1855. Traffic in children 
was prohibited in 1856. 


In 1857 His Highness Nasir-ud-Daula died, 
and he was succeeded by his son Nawab 
Afzal-ud-Daula Bahadur. 

The system of farming the taxes levied on 
imports and exports was abolished and the 
Customs department was formed in 1861, which 
in addition to its formal work, collected the 
duty on salt from Masulipatain and Kokan 
ports, a task that had formerly been entrusted 
as other revenue collections to contractors. A 
Stamp Paper office and a department for the 
execution of orders and decrees of the city 
courts of justice were established in 1862. A 
Secretariat was also established under the 
Minister in 1863 to exercise supervision over the 
administration of justice in the country. 

These reforms improved for the time being 
the administration of the country and raised 
morally its prestige, leaving, nevertheless, still 
much to be done. 



The unit of administration in the Nizam's 
Dominions, as in other parts of India, has 
always been the village with a collection of 
holdings around it by cultivators who live 
together as a body with a certain amount 
of union and community of interest among 
themselves. These were united according to 
administrative convenience into several taluqas, 
which again were formed into districts, and 
further on into Subahs, or provinces. This 
arrangement was adopted from the Mughal 
system of civil administration. Thus the 
Dominions of Hyderabad were divided into six 
subahs. After the troublous period of wars, the 
Dominions stood composed of the five subahs, 
viz., Hyderabad, Aurangabad, Bidar, Bijapur, 
and Berar. These divisions did not continue 
long on account of the following causes that 
combined to obliterate gradually the territorial 

(a) Assigning or ceding of territories from 
time to time. 

(b) Liberal and free grants of jagirs. 

(c) The farming or contract system for the 
collection of land revenue, without any defined 

limits Of the sirkars. 

This state of the land without well defined 
boundaries made it extremely difficult to 
grapple with the administration of land 


revenue. The Diwani territory at this time, 
with the exception of the restored districts of 
Raichur, Naldrug, and Dharaseo, which had 
been divided into taluqs for purposes of 
administrative authority did not correspond 
with the territorial divisions of the country. 
Therefore the country was redistributed into 
well defined proper districts called zuiahs* 
sub-divided into Taluqs, with definite boundaries, 
administered by a regular establishment 
working under the direct control of the 

This reform, known as the zuiabandi, 
was promulgated in 1864, its work being- 
entrusted to the MajUs-i-Maiguzari or Board of 
Revenue to supervise, direct, and control affairs 
connected with the revenue administration of 
the entire Diwani territory. 

By now the subah of Berar had been assigned 
to the British Government in lieu of the payment 
of the long vexatious Contingent, and so there 
remained only four subahs to form the whole of 
the Dominions, which after a careful redistri- 
bution was divided into 18 districts and 109 
taluqs. At the head of each taiuq was appointed 
a tahsiidar, whose principal duty was the collection 
of land revenue. Above the tahsiidar was the 
taiuqdar, with two or more assistants to help him 
in the discharge of his executive duties. 
Government treasuries were established in each 


taluq and district and placed in charge of their 

respective tahsildars and taluqdars. 

Having divided the country into civil divisions, 
a regular system of assessment, survey, and 
settlement was also introduced. Under the 
new system, instead of making the assessments 
at harvest time, when the peasant was not 
allowed to touch his crops until assessment had 
been completed, assessment was made on a 
fixed scale once in a year, and the peasant 
could dispose of his harvest when and how he 

Regarding this new system of assessment, 
the annual report of " Moral and Material 
Progress " for the year 1867-8 states : " Pains 
have been taken more and more to render the 
annual settlements equitable and moderate/' 
also "that all classes high and low connected 
with land or trade continue to flourish." 

The principles of land survey made were based 
on those laid down in the Survey Report by 
Mr. Goldsmid and Sir George Wingate. In this 
system a field was the unit of survey. After 
survey and classification of land, settlement 
was made with due regard to climate, proximity 
of markets, agricultural skill and the condition 
of the cultivators. The term of settlement was 
the same as in British India, ie., 30 years. As 
some difficulty was experienced in obtaining 
the services of trained men for the survey, a 


Revenue Survey school was established at 
the suggestion of Mahdi Ali Khan, Nawab 
Muhsin-ul-Mulk, the then Commissioner of 
Survey. Pupils were selected from the nobility 
and well-to-do classes and after training in 
theory they were sent to the districts to learn 
the practical work. The school having fulfilled 
its object after about a year was closed. 

In 1880 Sir Richard Meade, the Resident 
(1875-81), inspected the public offices in 
Hyderabad, and then wrote to Sir Salar Jung 
as follows: "Now that I understand we have 
finished all that Your Excellency wished me to 
see in connection with the affairs here, I think 
I may assure you in this way of the very great 
gratification that has been afforded me by this 
opportunity of observing their condition and 
working. The work and records of the Survey 
Department appear to me to be admirable and 
leave nothing to be desired, and the care that 
has been bestowed on everything in this 
department was very striking. The Settlement 
operations are, of course, quite distinct from 
the Survey work, but I gathered that they are 
being conducted with equal care." 

Sir Salar Jung saw the apparent necessity 
of improving the economic condition of the 
peasant, and he granted further concessions to 
him. Land attached to his house was exempted 
from taxation, fallow lands were freed from 


assessment, household utensils and implements 
of husbandry were prohibited from being 
attached, and proprietory right to his holding 
was conferred upon him. Never under any 
previous administration had any attention been 
paid to promote the welfare and prosperity of 
the peasantry, and the Government under Sir 
Salar Jung recognised the fact that the greater 
the prosperity of the agricultural class the more 
prosperous would be the condition of the State. 
These reforms proved to be such a great success 
that, thirty years later the revenue of the State 
was nearly three times more, while in Hyder- 
abad city itself it had been more than trebled. 

Reviewing the condition of the Deccan in 
a despatch in August 1867, Sir Richard 
Temple said: "The constitution, system and 
principles of the Nizam's Government are really 

Again, Mr. C. B. Saunders, Resident at 
Hyderabad from 1868 to 1872, thus speaks of 
the improvements in Hyderabad administration: 
" It is hardly too much to say that the Hyder- 
abad with which I became acquainted in 1860 
was to the Hyderabad which was described, for 
example in the despatches of my predecessor, 
Sir Charles (afterwards Lord) Metcalfe, as the 
England of the present day is to the England 
of the Stuarts a result essentially due, as 
the Government is aware, to the beneficient 

r -1 O 


administration and sound policy of the present 
Minister, Sir Salar Jung, and to the support 
afforded him by my previous predecessor. Not 
only was the public treasury full, but the 
annual income of the State exceeded the annual 
expenditure by about eight lakhs of rupees 
(Rs. 800,000), while the credit of the Govern- 
ment stood proportionately high. Owing chiefly 
to the abolition of the baneful system of former 
times, by which the collection of revenue was 
farmed out to contractors, disturbances in the 
interior of the country became rare. The 
Hyderabad Contingent has not fired a shot, 
except on their own parade ground, since the 
suppression of the Mutinies. In no respect 
does the recent administration of His Highness' 
country contrast more favourably with the 
state of things prevailing twenty years ago 
than in the regard to revenue matters/' 

In 1868 a new reform creating four Sadr-ul- 
Muhams or Assistant Ministers was introduced, 
and among them all the Government departments 
were distributed. These officers ranked next 
to the Minister and were given full powers of 
supervision and control over the departments 
entrusted to their charge. Each Sadr-ul-Muham 
was provided with a Secretary and an Assistant 
Secretary and the requisite establishment of 
subordinate officers and clerks. 

In the judicial system too far-reaching 
changes were effected. Two new courts and 


another, which may be described as an Appellate 
Court of Judicature, having jurisdiction over 
the whole of the Diwani territory, were 



In February 1869 His Highness the Nizam 
Afzal-ud-Daula died leaving an infant son, 
Nawab Mir Mahboob Ali Khan, who was 
proclaimed Nizam, with a Co-Regency consisting 
of Sir Salar Jung and Nawab Shams-ul-Umra to 
carry on the administration of the country, 
till the Nizam attained seniority. 

With the formation of civil divisions and the 
organisation of the revenue, civil and criminal 
administration in the mofassil, it became easy 
to create new departments, to facilitate prompt- 
ness and efficiency. Thus the Police, the 
Medical, the Educational, the Customs, the 
Forest, the Inam, the Survey and Settlement, 
the Public Works, and the Postal departments 
were established in rapid succession and were 
in full working order by the year 1880. 


As a result of the reforms introduced from 
time to time in the previous years, it was found 
that the administrative work was daily increas- 
ing in volume, and that much of the time of 


the Minister and the Sadr-ul-Muhams was 
being taken up by matters of minor importance 
which could be handled by subordinate officers. 
In order to remove this defect, the powers 
hitherto enjoyed by the subordinate officers 
were revised and enhanced. The Sadr-ul- 
Muhams were re-styled Moin-ui-Muhams and 
they retained their respective portfolios except 
that the Revenue and Finance departments 
were placed under one Moin-ul-Muham. A 
Notification was issued on the occasion of the 
reorganisation of the State administrative 
machinery, and it well summarises the whole 
of Sir Salar Jung's administration. 1 

The scheme, which was subsequently slightly 
modified in some of its details, was brought 
into operation by the Minister in November 
1882, commencing with the appointment of a 
Revenue Board. 

The following statement of income and 
expenditure of the State for 1882-83 may 
be compared with that shown at the close 
of Nawab Siraj-ul-Mulk's administration in 

i See appendix * A \ 

( Statement 



Heads of Revenue and Receipts Rs. 

1. Revenue derived from Land, Abkari, 
Forest, Customs, Stamps, Mint, Berar 
surplus, Law and Justice, Jails, Police, 
Post Office, Education, Printing, Money 
Order fees, Minor departments, In- 
terest, Desh-patti, Miscellaneous, Mili- 
tary, Public Works, and State Railway... 2,98,71,000 

2. Receipts from Village Service funds, 
Money Order remittances, Deposits, 
Advances recoverable, Railway Capital, 

and Sale proceeds of Promissory Note... 59,50,000 

Total ... 3,58,21,000 
Opening Balance ... 63, 16, 151 

Total ... 4,21,37,151 


FOR THE YEAR 1292 F. ( 1882-83 A. D. ) 

Heads of Expenditure and Disbursements Rs. 

1. Land revenue, Abkari, Forest, Customs, 

Stamps, Mint, Law and Justice, Jails, 
Police, Post Office, Education, Printing, 
Money Order establishment, Medical, 
Administration and Public departments, 
Pargana Vatandars, Allowances and 
assignments, Kilats etc., Refunds and 
drawbacks, Interest, Miscellaneous, 
Famine, Payments to His Highness, 
Stables and elephants, Supplies and 
Services, Mansab, Military, Public 
Works, Municipalities, and State Rail- 
way ... ... ... 2,89,43,000 

2. Village Service fund, Money Order 
remittances, Deposits, Advances re- 
coverable ... -. 58,00,000 

Total ... 3,47,43,000 
Closing Balance ... 73,94,151 

Total ... 4,21,37,151 


Sir Salar Jung was not a well read man, as 
understood today. He was surrounded by a 
multitude of sycophants come from every 
degenerated part of Muslim society in India ; 
yet the genius of his mind triumphed. Like a 
brave man he cut his personality across every 
difficulty, and overhauled every domain of 
administration. He endeavoured his utmost to 
settle with the British Government the vexed 
question of the Hyderabad Contingent and 
eradicated all evils in the revenue department 
and brought the Budget within the limits of 
solvency, such as had never been known to the 
exchequer for generetions together. 

Sir Salar Jung met an untimely death in 1883, 
before he could witness with his own eyes the 
completion of the edifice whose foundations 
he had laid in very trying circumstances. 

Thus passed away a great man. His 
achievements were a panorama of great deeds. 
But for him Hyderabad would have passed 
through the travails of Mysore. Whatever 
that has happened since his death has been a 
confirmation of his administrative reforms, and 
a consolidation of his policy on broader and 
deeper lines. 




(1884 to 1911) 

ALTHOUGH the late Sir Salar Jung's reforms 
had become a permanent feature of the 
administration of Hyderabad yet its smooth 
working was soon after his death disturbed 
by intrigues, as usual one party looking 
to the Residency for favours and the other 
to Eastern kindnesses from at home. In 
this conflict the administration of the country 
suffered a set-back. Many of the late Minister's 
henchmen, who were in the service of the 
State, were intimidated and sent out of 
Hyderabad. Even Sir Salar Jung's son, 
Nawab Laiq Ali Khan, who was co-administrator 
with the Peshkar, Raja Narender Pershad, was 
kept as far as possible in the background. 
Describing the affairs of the State, Mr. W. S. 
Blunt, who had come out to India at this time, 
and visited Hyderabad, in his diary states : " the 
Peishkar paid little attention to business, and 
the affairs had got into a bad state; a 


general round of plunder as in the old time had 
been signalised, there was no public office at 
which business was transacted, and the Peshkar 
deliberately ignored his co-administrator Salar 
Jung/' This state of affairs, he observes, 
"was encouraged by the Residency, whose 
policy it was to show that the native government 
was unfit to keep order in the country/' 1 

The outcome of the intrigues was that, a 
Council of Regency, consisting of the Peshkar, 
Sir Asman Jah, and Nawab Shams-ul-Umra, 
was appointed in place of the co-administrators. 
Nawab Laiq Ali Khan was made the Secretary 
to the Council, and so without voice in its 

In February 1884 Lord Ripon, the then 
Viceroy and Governor-General of India, visited 
Hyderabad, and after exchanging views with 
the Nizam and others it was decided to invest 
the Nizam with full sovereign powers. And 
with this decision arose the question of the 
appointment of a Prime Minister. As Mr. Blunt' s 
diary shows there were more than one person 
aspiring for this high position, and party 
interests worked hard both in the court of the 
Nizam and in the parlour of the Residency. 
Eventually the young Laiq Ali Khan was agreed 
to between the Nizani and the Viceroy to be 
the Prime Minister. 

l India under A'ipon W. S. Blunt, p, 62. 


A grand durbar was then held, in which 
Lord Ripon and others participated, when the 
young Nizam's full authority over his Dominions 
was recognised, 

A humorous incident connected with the 
Durbar has been narrated by Mr. Blunt, who 
was present at the function, in his diary thus : 
" The Peishkar, who came to take his seat next 
the thrones was bundled out of it, to his 
confusion, and made to take his chair several 
places down. Poor old man, he seemed quite 
dazed, for it was the first he had heard of his 
disgrace. I hear the poor Peishkar was so 
utterly confounded that he walked home im- 
mediately after the ceremony without waiting 
for his carriage, and was picked up somewhere 
in the street by his servants, having lost his 
way." 1 

As soon as the young Nizam assumed the 
sovereign rights of the State, the first 
thing he did was to issue a proclamation to 
his subjects expressing his solicitude for 
their happiness and welfare in the following 

"Nothing will afford me greater pleasure 
than to see my people living in peace and 
prosperity, engaged in the development of 
their wealth, in the acquisition of knowledge 
and the cultivation of arts and sciences, so that 
by their efforts the country may rise to a high 

1 India under Ripen, W. S. Blunt, p. 187. 


state of enlightenment and the State derive 
support and benefit from their knowledge and 
intelligence. It is my earnest hope that the 
Minister and all the officers of the State relying 
on my protection and support, will always be 
zealous in the promotion of good and the 
suppression of evil and will protect the rights 
of the people without fear or favour/' 

During the period Nawab Laiq Ali Khan held 
office he endeavoured to continue the reforms 
and general progressive administration of the 
State so substantially initiated by his father. 
One important change he effected was the 
amalgamation of the establishments of Assistant 
Ministers with those of the Minister, although 
they were allowed to remain under the new 
appellation of Moin-ui-Muham. The result of this 
change was that, the Secretaries became 
powerful, relegating the Assistant Ministers 
into obscurity, and this position reacted on the 
Minister himself. 

For the purpose of legislation, a consultative 
council, called the " Council of State", was 
established, the Minister being its first member. 
The other members were Nawabs Kurshid Jah, 
Bashir-ud-Daula, and Vikar-ul-Umra, and the 
Peshkar. The Nizam was the president of the 

The atmosphere of intrigue continued to pre- 
vail ; the confidence and friendship which had 


from the outset existed between the Prime 
Minister and the Nizam were consequently 
disturbed, and the former was compelled to 
resign his office, which he did in April 1887. 

The Nizam now had to take the office of the 
Minister into his own hands and conduct the 
administration, assisted by an adviser and a 
secretary, for about a year. The files of each 
secretariat, after having been duly laid before 
its respective Moin-ui-Muham, were sent to the 
Nizam, who studied carefully each file and 
passed his orders thereon. As the result of the 
procedure followed by the Nizam the secretaries 
were reduced to their proper position and the 
Assistant Ministers, emerging from their 
obscurity and inactivity, became once more 
useful members of the administration. 

Although the Nizam himself was anxious, as 
were his subjects, to continue his personal 
administration, yet, as the ancient constitution 
of the State necessitated the appointment of 
a Minister, he was obliged to follow the 
time-honoured custom, and appointed Sir 
Asman Jah as Minister. 

Sir Asman Jah was an old and tried 
administrator of ability having acted more than 
once in that position before. In the very first 
year of his administration important changes 
were made in the State budget with reference 
to both the receipts and the expenditure. 


Important modifications were also made in 
the Revenue department. The extension of 
indigenous industries commenced by Sir Salar 
Jung was encouraged throughout the State, 
and the necessary stimulus given to trade and 
commerce. In order to afford agriculturists 
greater facilities, an Irrigation Board was 
established, and a liberal sum of ten lakhs of 
rupees for the purpose was alloted in the 

The state of affairs when Ministers were 
in the background revived and Secretaries 
assumed once again complete authority over 
the departments of administration. The Nizam 
aptly dubbed the situation as "an Administra- 
tion of Secretaries/' 1 

When Sir Asrnan Jah visited Calcutta in 
1888, the Viceroy, Lord Dufferin, warmly 
congratulated him and expressed his apprecia- 
tion of all that he had done to improve the 
administration of Hyderabad. This nobleman 
guided the affairs of the State for six years, 
at the end of which he resigned the office, and 
his cousin, Nawab Sir Vikar-ul-Umra took 
charge of the administration in 1893. 

The year 1893 marks the second stage of 
a definite constitutional advance in the 
administration of Hyderabad. His Highness 
the Nizam announced to the people the 

1 Qatinfic/'.u rMidank, ijio IJ. 


institution of many important changes in the 
constitution of the Government through an 
edict kmrvvn as Qanuncka-i-Mubarik. It is an 
exhaustive document of great importance in 
which the Nizam has reviewed the past 
administration of his State, with an insight 
that may do credit to any ruler. 

He next set out in detail the major defects 
of the existing system demanding immediate 
attention, and the scheme of his reforms, 
conducive to the peace, contentment, and 
happiness of his subjects, was adumbrated. 
Finally His Highness emphasised certain 
principles to be particularly observed in the 
new system; and while declaring that "the 
character of a Government could only be judged 
by the extent of its contribution to public peace 
and prosperity as well as to a solvent ex- 
chequer", His Highness enjoined scrupulous 
observance of all the administrative principles 
he had laid down to ensure the fulfilment of 
the above ideals. 

The important features of the new scheme 
were the institution of a Cabinet Council for 
executive business, and a Legislative Council 
for the purpose of framing laws, in place of the 
Council of State, which was an executive and 
legislative body combined, but which seldom 
met and hardly transacted any business. The 
Cabinet Council was a consultative body, 


composed of the Prime Minister, the Peshkar, 
and the departmental Ministers, the Prime 
Minister being the President. All matters of 
administrative importance were to be referred 
to this Council for settlement, as also were any 
matters on which there might be a difference 
of opinion between the departmental Ministers 
and the Prime Minister. Certain classes of 
business were specially reserved for the 
consideration of the Cabinet Council, such as 
the annual State budget, final disposal of cases 
for report on which special commissions had 
been appointed, questions relating to State 
concessions, important questions arising out of 
the proceedings of the Legislative Council, and 
any other matters which from time to time 
were considered proper for the Council to deli- 
berate upon. The Prime Minister, as President 
of the Council, had the right of over-ruling any 
decision arrived at by a majority of the Council 
subject to the Nizam's consent. 

Rules were issued clearly defining the duties 
and powers of the Cabinet Council, the Prime 
Minister, the Peshkar, and the departmental 
Ministers. The distribution of work among 
them was as follows : 

The Prime Minister had under his own 
supervision Finance, Political, Revenue, 
Stamps, Mint, Post Offices, Regular Troops, 
and stud. 


The Peshkar was in charge of the Imperial 
Service and Irregular Troops. 

The Minister of Justice and Public Affairs 
had Justice, Jails, Registration, Medical, 
Religious Institutions, and the Court of Wards. 

The Minister of Police and Public Works had 
Police, Public Works (including Railways and 
Mines), Municipalities, and Sanitation. 

There were six Secretaries in charge of 
Finance and Revenue, Judicial, Police and 
General, Public Works, Military, Private 
Secretariat, and Daftar-i-Mulki (Persian) res- 

In the year 1898 the main principles of the 
new scheme in the form of a few simple rules, 
excluding unnecessary details, and embodying 
such modifications as the five years working of 
the new constitution had suggested were 

In the latter half of 1901 Sir Vikar-ul-Umra 
took ill, and the Peshkar, Maharaja Sir Kishen 
Pershad, officiated for him till about a year 
when afterwards he was appointed as Prime 
Minister on his death. 

From the time of that great statesman, Sir 
Salar Jung, the Hyderabad Government had 
kept before them the ideal of an efficient and 
benevolent administration. At the beginning of 
the present century, the Nizam saw that that 
object had not been achieved in a very marked 


degree owing to financial difficulties, and 
therefore he fixed his civil list and took 
measures to place the finance of the country on 
a sound basis. As the result of this in the ten 
years that followed the administration reached 
a high degree of efficiency. 

Hitherto there was no Minister for the Finance 
department which had remained all along 
directly under the Prime Minister's control. In 
1901 a Minister for Finance was appointed and 
given wide powers, and with it there was a 
re-shuffling of portfolios among the Ministers. 

Nawab Mir Mahboob Ali Khan was a 
progressive ruler of independent character and 
sound judgment, and during his rule an all- 
round progress in the administration as well 
as in the general welfare of the State was 

The system of revenue settlement was revised 
to the benefit of the peasantry ; new irrigation 
works were constructed, and the old ones 
restored and improved ; encouragement and 
impetus was given to industries and crafts; 
and railway system was developed. He paid 
particular attention to education. A number 
of schools were opened in the districts, and 
schools of medicine were founded both for men 
and women. He was anxious to further the 
cause of science in the State, and in 1889 he 
invited Dr. Lauder-Brunton and other eminent 


medical men to Hyderabad to investigate 
experimentally the effects of chloroform, to 
the cost of which he contributed Rs. 15,000. 
Large sums of money were spent on the reform 
of the judicature, the reorganisation of the 
Police, the exploiting of mineral resources, and 
overhauling the Abkari and Forest departments. 
The financial stability of the State was quite 
secure, and its cash deposits and securities 
which amounted to one crore and thirty lakhs 
in 1901 were increased to over five crores in 

In the month of August 1911 His Highness 
died, and thus ended the reign of the ruler who 
brought the administration of Hyderabad into 
line with British India, and kept it above the 
intrigues and counter-intrigues that had dis- 
turbed the early years of his reign. 

The late Nizam was well known throughout 
India for his generosity, kindliness, and saintly 
character. The Hindus looked upon him as an 
avatar, and even today Hindus and Muslims 
alike visit his tomb daily in large numbers. It 
is popularly believed that vows made in his 
name are unfailingly fulfilled, and that a 
rose-petal from on his grave has the power of 
an antidote for snake-bite. 



THE present ruler, His Exalted Highness 
Asaf Jah, Muzaffar-ul-Mulk Wal-Mumalik, 
Nizam-ul-Mulk, Nizam-ud-Daula, Sultan-ul- 
Uloorn Nawab Sir Mir Osman All Khan 
Bahadur, Fateh Jung, G. C.S.I. G.C.B.E., is the 
seventh Nizam in the line of the Asaf Jah 
dynasty ; and he ascended the throne with the 
declaration that in every way he would do his 
best to do good to his people and his country by 
following in the footsteps of his late lamented 
father, Nawab Mir Mahboob Ali Khan Bahadur. 

His Exalted Highness has a powerful per- 
sonality, possessing determination of character. 
He has a marked aptitude for business, which 
characteristic he showed even when he was 
heir-apparent by digesting the many State 
documents that, by order of his august father, 
were placed before him every morning. His 
upbringing has been somewhat stoical and 
strenuous. His Exalted Highness takes keen 


interest in all matters of administration and 
has identified himself with every scheme of 
development of Government machinery. No 
one works more laboriously, and he is always 
ready to support any measure designed to 
improve the conditions under which his twelve 
million subjects live and work, 


In 1912 Maharaja Sir Kishen Pershad Bahadur 
desired to be relieved of the heavy responsibility 
of Prime Minister, retaining, however, the off ice 
of Peshkar, and His Exalted Highness appoint- 
ed in his place Nawab Yusuf Ali Khan Bahadur, 
Salar Jung III, as Prime Minister. 

During the eleven years of Maharaja 
Bahadur's ministry every branch of the Hyder- 
abad administration was improved, and when 
the Viceroy, Lord Hardinge, visited Hyderabad 
in 1911, he congratulated him on the successful 
administration of the State as well as the 
remarkable advance made in so many directions. 

When the young Salar Jung took the reins 
of administration into his hands, it was 
hoped that before him lay a long career of 
public administration in Hyderabad, and the 
reference made to this feeling by the then 
British Resident, Colonel A. F. Pinhey, speaking 
on the occasion of the birthday anniversary 
banquet given by His Exalted Highness at 
King Koti Palace, is significant. 


" Salar Jung ! " spoke the Resident, " What 
a name to conjure with in Hyderabad ! He has 
everything in his favour to start with, youth, 
an historical and honoured name, and an 
unblemished character. I see no reason why 
he should not meet with as much success or 
even more than his illustrious grandfather, and 
in congratulating him, we can, at the same 
time, congratulate His Highness on the wise 
and popular choice which he has made." 

Shrewd and cultured as the young Salar Jung 
is, he tried to emulate the life-work of the 
great Sir Salar Jung, and during the brief 
period of a couple of years of his ministerial 
regime, with which so many party intrigues 
and conflicting interests had to be encountered, 
he maintained the prestige of the administra- 

Speaking, on the occasion of His Exalted 
Highness' birthday dinner and ball held at the 
Falaknuma Castle, in July 1914, six months 
prior to the young Minister's resignation, Mr. 
Stuart Mitf ord Fraser, the officiating Resident, 
said: "the official history of the State has 
been one of steady progress in every depart- 
ment of Government, marking the initiation of 
well-considered and wide-reaching schemes for 
the development of the resources of the State, 
the opening up of communications and the 


improvement of the material and educational 
conditions of the people/' 

Referring at the same time to the personal 
activities of the Nizam, the Resident said : "I 
am only stating what is well-known to every 
ore in Hyderabad when I say that he has 
established a reputation among those who work 
with him for the keen interest he displays, his 
official openness of mind and breadth of 
judgment which result in every scheme of 
importance for the welfare of his subjects 
receiving prompt attention at the hands of his 

In December 1914 Salar Jung resigned his 

His Exalted Highness, who ever since his 
accession has been giving undivided attention 
to -the affairs of the State and mindful of 
the welfare of his subjects, now took the direct 
administration of the Dominions into his own 

In his administration, the Nizam closely 
proceeded on the lines chalked out by the late 
Nizam as the result of which many and varied 
improvements were made in the State. During 
the quinquennium of His Exalted Highness' 
personal administration the financial condition 
of the State was made sound, and the currency, 
which is a unique institution of the State, was 
placed on a secure foundation. The total 


revenue collection in the Dominions averaged 
five crores per annum against an expenditure 
of a little over four crores, leaving a substantial 
surplus at the close of each official year so that 
the reserve fund at the end of the quinquennium 
amounted to three crores, the cash balances 
were over two crores and Government invest- 
ments stood at over seven crores. In public 
welfare departments, the educational system 
was thoroughly overhauled, the Medical depart- 
ment was reorganised and a sanitary department 
established, two lakhs of rupees were set apart 
for the City Improvement Trust, and the railway 
system was extended. And to improve the 
material and economic condition of the peasant 
and the poor such useful departments as 
Agricultural and Co-operative Credit Societies 
were created during this period. 

For five long years His Exalted Highness 
worked hard ever thinking in mind as to how 
the happiness and prosperity of the peoples of 
of Hyderabad, in whose contentment and 
advancement the interest of the House of Asaf 
Jahi has from the earliest time been paternal 
and abiding, could be enhanced. His close and 
personal association with the administration of 
the State during this period revealed to him 
the many flaws in the existing constitution, 
and he set about thinking seriously to replace it 
by inaugurating such a system of administration 
as would not only secure greater efficiency, and 


ensure happiness to his people but also bear 
in mind the change of time, complexities of 
modern life, and new political perceptions. 
While the Montague-Chelrnsford reforms were 
agitating the mind of people in British India, 
the people in Hyderabad were anxiously looking 
forward to the announcement of a new consti- 
tution of Governmental machinery. 

It may be observed that in the long course of 
history since 1893 during which the constitution 
inaugurated by the late Nizam had been in 
operation, many abuses might have crept in, 
and in the light of progressive thought and 
political advancement in British India might 
have been found wanting. The principal flaw 
in the existing constitution lay in the highest 
deliberative body of the State, the Cabinet 
Council itself. It failed to function so usefully 
as was expected at the time of its creation 
because of its being merely a consultative body, 
without power to enforce its decisions and 
without responsibility for the consequences of 
their practical application. This aspect of the 
constitution was characterised by the present 
Ruler as suggestive of those conditions of 
success which ought properly to constitute the 
foundation of every political structure intended 
for the prosecution of great objects and for the 
realization of large results, associated with the 
advancement of public , welfare. The other 
minor defects found in practical working were : 


firstly, lack of co-ordination and co-operation 
among the various departments, resulting in a 
multiplication of labour ; secondly, undue delay 
in the disposal of cases ; and thirdly, confusion 
of functions due to incomplete demarcation of 
powers of each department. Although there 
was a provision in the constitution to frame 
rules for the working of each department and 
for the regulation of inter-departmental activi- 
ties yet it does not seem to have been acted 

His Exalted Highness had the sagacity to 
realise that something should be done radically 
to set these things right by giving to his 
administration a new from of government. 


" One important condition of success in the 
prosecution of any large scheme of public good 
is the adoption of administrative methods to 
the requirements of the objects intended, as 
the principle of continuity in good Government 
is more a matter of political system than of the 
personal attributes of Rulers/' With this high 
conception of polity His Exalted Highness 
proceeded with the inauguration of the New 

The Nizam decided upon a large measure of 
devolution of power, subject to his ultimate 
control and authority, and to employ on a large 


scale institutional rather than personal agencies 
for the administration of the State. Accordingly 
he decided that the larger portion of the duties 
discharged hitherto by the Prime Minister 
should be transferred to an Executive Council, 
and the enhaced powers conferred on the 
departmental Ministers at the time he took 
the administration into his own hands be with- 

Thus on 17th November 1919 the old Cabinet 
Council was dissolved and the administration 
entrusted to an Executive Council with a 
President. A constitution was promulgated 
defining cases which required His Exalted 
Highness' orders, cases which could be disposed 
of by the President and cases which must be 
referred to the Council, as well as the powers 
of the Council, its President and the Members, 
and their collective and individual responsibili- 

At a durbar held on this day to mark this 
memorable event His Exalted Highness the 
Nizam made the following inaugural speech : 

"This Durbar has been convened to mark an 
event of very great moment in the history of 
my Dominions. As you are all probably aware 
the original form of Government in this country 
was a pure autocracy assisted by a Prime 
Minister. It is a matter of history, how, 
with a few honourable exceptions, the Prime 


Ministers of the past, steadily pursued the 
policy of undermining the authority of the 
Nizams under whom they served and to whom 
they owed allegiance as subjects and servants. 
The State archives are replete with evidence of 
such transgressions resulting in friction and the 
destruction of administrative efficiency so 
largely detrimental to the public weal. The 
passion to grasp at power, however unlawful 
and unconstitutional, dried up the sources of 
initiative and reform. 

"Successive Ministries disclosed the imper- 
fections of the system. My father, long after 
the death of the first Salar Jung, having given 
his reorganisation of the administration a full 
and fair trial, was deeply impressed by the 
defects present in it and was impelled in 1892 
to promulgate the "Qanuncha Mobarick" 
defining thereby the powers and responsibilities 
of the Prime Minister and his Assistants. A 
further attempt at efficiency was made by the 
issue of the " Rules of the Qanuncha". 

"Soon after my accession, my own scrutiny 
and examination of the administrative problems 
of my Dominions convinced me that the defects 
were ineradicable unless and until there was a 
structural change in the Government. After 
anxious and mature consideration, I decided to 
take up the heavy burden of direct administra- 
tive charge without the help of a Prime 


Minister. For five long years I have toiled 
hard and ever kept in view the measures that 
promised to secure the happiness and prosperity 
of my beloved subjects in whose contentment 
and advancement my interest is paternal and 
abiding. Close and personal association with 
the administration has revealed to me the 
necessity of another departure from the exis- 
ting method. Change of time, complexities of 
modern life, new political perceptions in the 
East and the internal and external interests of 
my Dominions have put such a severe strain 
upon personal and direct control as to call for 
some immediate measure of appreciable relief. 
Finding it impossible to revert to a system 
whose repeated breakdown had proved its 
futility, I resolved after much reflection to give 
my Government a new constitution which would 
secure greater efficiency and ensure progressive 
force. Experiment elsewhere has proved that 
Council form of Government has many and 
varied advantages over government vested in a 
single official however eminent. It is my 
earnest desire, therefore, to secure these 
advantages for the well-being of my people. 

" With this end in view I have by a Firman 1 
issued today, constituted an Executive Council, 
consisting of a President, 7 Ordinary Members 
and an Extraordinary Member without a 
portfolio. Under well considered rules the 

i See appendix * B', 


powers of the Council, its President and the 
Members have been defined and their collective 
and individual responsibilities fixed. Its 
personnel has been determined with the greatest 
possible care. It includes men of mature 
experience and approved merit. The President, 
Sir Ali Imam, needs no introduction. His 
career in British India is very well known. A 
Council so constituted will strengthen the 
administration in all its branches and offer 
sound advice on those matters affecting the 
larger interests of the State that have been 
specifically reserved for the exercise of my own 
powers. Its corporate action will give adminis- 
trative cohesion and yield results highly 
beneficial to my people. The spread of 
education, the development of economic 
resources, the encouragement of commercial 
and industrial enterprise, the adoption of 
advanced sanitary and hygienic measures, the 
improvement of roads and communications and 
many other measures await solution. 

" In these and other directions of internal 
reform the labours of the Council will be of 
inestimable value no less than in matters of 
general policy and the political relations of my 
Government with the Government of India. 
These are as friendly and cordial as in the past. 
Ever since the dawn of British rale in India an 
unbroken record of alliance and friendship with 
iny house has been maintained. In more than 


one crisis the sword of an Asaf Jah has been 
drawn in the defence of the honour and 
integrity of the British Empire. My own 
contributions to win the world-wide war from 
which the British Empire has so triumphantly 
emerged are too well known for me to dwell 
upon. The Council will, therefore, find itself 
in a happy position to approach the all 
important question of the restoration of the 
Berar. My claim to the possession of this 
integral part of my Dominions is based on 
absolute justice and it is inconceivable that on 
an impartial examination it can be ruled out. 
I shall, therefore, await the advice of the 
Council on this momentous question with deep 

"To my Nobles, Officials, Jageerdars and my 
beloved subjects generally I commend this new 
Constitution and earnestly call upon them to 
support it with unfaltering 'devotion and loyal 
co-operation. No constitution can fulfil its 
functions without strict and jealous regard to 
its observance. 

"With these words, I wish Sir Ali Imam and 
his colleagues every success in the discharge of 
the great duties upon which they now enter/' 

When the appointment of the late Sir Ali 
Imam as ' Sadr-i-Azam ' or President of the 
newly constituted Executive Council was 
announced every one in Hyderabad as well as 


in British India welcomed it as the inauguration 
of a new life and vision for the State, in as 
much as Sir Ali Imam was expected to introduce 
reforms which would give shape to the progress- 
ive ideals of His Exalted Highness in matters 
of public administration. 

Sir Ali's first measure of great importance 
was the separation of Judicial from Executive, 
a reform for which people in British India have 
been clamouring for the last half a century. 
The next scheme that he propounded was of a 
very far-reaching importance, and had it been 
accomplished the whole historical geography of 
the Nizam's Dominions would have been 
altogether different today. It was the Coloni- 
zation scheme, where by the colonisation areas, 
which consisted of extensive tracts of land lying 
waste and profitless to the State and the public 
alike, were to be formed into blocks of varying 
sizes from 100 acres upward with judicious and 
equitable distribution of good and bad lands. 
When plots were marked out the fullest 
publicity was to be given with all necessary 
particulars and description. The blocks were 
to be settled in perpetuity conferring on the 
colonists the full and complete occupancy rights 
in the entire holding, which were to descend to 
their heirs and successors by the law of" 
primogeniture. The grant in settlement was 
to be under an instrument, the sign manual. of 
the sovereign, His Exalted Highness the Nizam. 


By this scheme Sir AK Iinam aimed evidently 
at exploiting the waste land in the Dominions, 
and incidentally increasing the wealth of 
the State, as also the population. But an 
influential section of opinion raised a hue and 
cry against the scheme, which they very wrongly 
characterised as anti-national calculated to harm 
the interests of the sons of the soil. 

It is rather unfortunate that before any 
further reforms could be adumbrated, Sir Ali 
Imam had to resign and leave the State in 1922. 

The next President was Nawab Sir Faridoon 
Mulk Bahadur, who retired after a year. 
He was succeeded by Nawab Wali-ud-Daula 
Bahadur, and he continued to be the Presidert 
till 1925 when Maharaja Sir Kishen Pershad 
Bahadur was once again honoured with the 
highest office of the State. In spite of his 
advanced age Maharaja Bahadur is still 
continuing to discharge his duties. 

The Council is at present composed of a 
President and six Members called 'Sadr-ul- 
Mohams ' in charge of Finance, Law, Military, 
Revenue, Public Works, and Political portfolios. 
The distribution of subjects among them is as 
follows : 

The Finance Member deals with Finance, 
Accounts, Treasury, Mint, and stamps, 
Electricity, Railways, Co-operation, and Mines. 


The Law Member is in charge of Legislative 
Council, Legal advice, Judicial Committee, 
Judicial, Ecclesiastical, and Stamps and Regis- 
tration departments. 

The Military Member has under him the 
Regular and Irregular troops, Educational 
(including Osmania University and Obser- 
vatory), Veterinary, Medical, and Postal 

The Revenue Member has Land Revenue, 
Court of Wards, Jagir and Inams, Famine 
and Revenue Inspection, Settlement, Forests, 
Customs, Statistics, Local Funds, Industries 
and Commerce, Agriculture, Excise, and Police 
and Jails. 

The Public Works Member has under his 
supervision Public Works (Roads and Buildings), 
Irrigation, Flood and Water works, Telephone, 
and Electricity pertaining to districts. 

The Political Member is in charge of Political 
department, Hyderabad Municipal Corporation, 
City Improvement Board, and Public Gardens. 

The President is invested with the powers of 
the Chief controlling authority in the State, 
and is responsible to the Nizam for the proper 
administration of the various departments of 
Government. All matters beyond the powers 
of departmental Members are referred to him 
f of orders. He also carries on all correspondence 


between the Nizam's Government and the 
British Residency, a weekly statement of which 
has to be submitted to His Exalted Highness. 

There is one Chief Secretary Peshi Depart- 
ment and ten Government Secretaries, Political, 
Financial, Judicial, Revenue, Secretary Legis* 
lative Department, P, W. General Branch, 
P. W. Irrigation Branch, Military, Commerce 
and Industries, and Ecclesiastical. 

From 1919 up till now the Executive Council 
continues to be the chief governing body of the 
State. Though, of recent years, His Exalted 
Highness has given the Council wider powers, 
powers of initiative, with a well defined liberty 
of action, yet by no one is this constitution 
more jealously guarded than by His Exalted 
Highness himself. 

During the last quarter century of His Exalted 
Highness' reign, Hyderabad has achieved an 
all-round progress and prosperity. A comparison 
of certain figures of expenditure at the date of 
his accession with those of the last budget will 
give an idea of the progress made. The sum 
annually spent on public education was then 
only 16 lakhs, and it is now 90 lakhs per annum ; 
on medicine and sanitation 8 lakhs, it is now 
26^ lakhs; on agriculture j> lakh, it is now 
9 lakhs ; on Co-operative Credit Societies lakh, 
it is now 4^ lakhs ; on irrigation 23i lakhs, and 
it is now 591 lakhs, exclusive of nearly five 


crores of rupees sunk in major projects, the 
biggest being the Nizam Sagar, with 442 miles 
of canals commanding an irrigable area of 22 
million acres of land. 

In matters of administration a definite 
advance, in keeping with the progressive growth 
of political thought and conceptions, has been 
made. In so doing, the structure has been built 
solidly, if not spectacularly, upon the bed-rock 
of living tradition and in harmony with the 
broad level of popular sentiment and conviction. 
As a result each new development was given a 
thorough trial ere the next advance was made, 
and the body politic spared the pain of rushing 
through too many innovations and hurried 
reforms without understanding. 

The budget of the State, which is by itself a 
great credit to the administration of Hyderabad 
today, has long been kept entirely free from 
the demands of the ruler for his personal use ; 
there is a Legislative Council with elected non- 
official representation in it; a Judiciary 
independent of the Executive; a fixed Civil 
List ; and a trained Civil Service with security 
of tenure. 

Hyderabad under the present ruler has been 
making a distinct contribution to the cultural 
development of India by its monumental work 
of conservation and preservation of ancient 
artistic and architectural remains, by its 


munificent support to the publication of many 
outstanding works of lasting merit on artistic 
and literary subjects, by liberal grants to 
several seats of Indian culture and learning, and 
by the foundation of a Vernacular University, 
all of them supported and encouraged by the 
Nizam himself. 


( Continued ) 


SINCE sound finance is the pivot of all 
national stability and progress, Hyderabad has 
husbanded its finances with such care and 
continuity of policy during the last thirty years, 
under the three successive Finance Ministers, 
Sir George Casson Walker, Sir Reginald Glancy, 
and Sir Akbar Hydari, who is still in charge of 
the Finance portfolio, as to have been able to 
attain the present notable advance in many 

The period prior to the appointment of Sir 
Salar Jung as Minister in 1853 has been 
described as the darkest days of Hyderabad 
Finance. Up to that year the finances of the 
State were in a deplorable condition. There 
was no Public Treasury, nor any regular record 
of accounts. The revenue of the State was 
small and the expenditure high. The deficit in 
some years amounted to k about 30 lakhs equal 


to nearly one-fifth of the entire annual grofe& 
revenue of the country. 

The chief source of income then, as now, was 
land revenue, which under all its heads yielded 
about a crore of rupees, exclusive of the cost 
of collection, which amounted on an average 
to about 10 per cent of the net proceeds. 
On the expenditure side the Military Depart- 
ment was the most costly, absorbing almost the 
whole of the income from the land revenue. 
Thus the merest dole was meted out for the 
support of all those public departments on 
which the prosperity and happiness of the 
people depend. Public instruction received 
only a few hundred rupees a year. About an 
equal sum was expended on sanitation and 
dispensaries generally. The expenditure in 
connection with the postal service did not exceed 
a few thousands. For all classes of public works 
only about twenty thousand rupees were set 
aside yearly, even such absolute essentials as 
repairs of tanks and roads not being exempt 
from the general neglect. For the administration 
of Justice in the Dominions less than Rs, 50,000 
were provided, while jails cost only about half 
that sum. 1 

It was at such a time that Sir Salar Jung 
assumed the office of Prime Minister. One 
of the first acts of his administration was to 
appoint two competent men for the preparation 

Administration Report, 1331 F., companion volume. 


of accounts under his own personal supervision 
Perceiving that no improvement was possible 
so long as the expenditure exceeded the incpine, 
he directed his first efforts towards securing 
financial equilibrium. In this he succeeded 
after much anxious labour and the credit of the 
State in the local money market was substantially 
improved; fresh loans at moderate rates of 
interest were then negotiated, and older debts, 
bearing heavy interest, were paid off. The 
annual interest charged against the State war 
thus largely reduced. The savings that resulted 
from the various measures adopted were, in 
their turn, applied to the redemption of some, 
of the districts which had been mortgaged to 
creditors, and resumptions were made of lands 
which had been appropriated by private indivi- 
duals without valid title. These measures in a 
few years resulted in an increase in the annual 
revenue of not less than fifty lakhs of rupees. 

So rapid was the progress towards the 
stabilisation of the State finances that, Mr. 
Saunders, the Resident, in his Administration 
Report for 1869-70, wrote: "Not only was 
the Public Treasury full, but the annual income 
of the State exceeded the annual expenditure 
by about eight lakhs of rupees, while the credit 
of the State stood proportionately high/ 1 

Side by side with the reforms in the 
general and financial administration, a 


j&iproveinent was effected in the system of 
records and audit of accounts. A uniform system 
of accounts, based on local requirements, was 
formulated, and eventually the Budget system, 
with classification of heads and sub-heads, was 
adopted. To improve the system further, four 
officers were selected and sent to Berar and to 
thie Bombay Presidency for training in Accounts, 
aijdon their return were appointed as Assistants 
to the Accountant-General . 

During the first six months of his tenure of 
office only about eight lakhs of rupees were 
received into the Public Treasury at Hyderabad , 
and at the end of that period the balance in 
hand was Rs. 13,000. During 1883, the closing 
year of the great Minister's life, the total receipts 
amounted to Rs. 3,58,21,000 and the balance in 
hand was Rs. 73,94,151. Thus Sir Salar Jung, 
by his various reforms in the financial system 
of the State, left the finances in a flourishing 
condition at the time of his death. 

The financial condition of the State continued 
to be satisfactory till the great famine of 1898, 
wh^n there was a deficit of Rs, 144*47 lakhs 
tid Rs. 340 lakhs had to be borrowed from the 
Government of India for famine relief measures. 
In 1900 there was a further deficit of Rs. 75'94 
lakhs. During the decade 1901 to 1911 the 


situation improved by the late Nizam, Nawab 
Mir Mahboob All Khan Bahadur, having 
brought about drastic changes in the financial 
administration on the advice of his Finance 
Minister, the late Sir George Casson Walker; 
and the income paid into the Government 
Treasury in excess of the whole year's 
expenditure averaged about 25 lakhs. This 
improved position enabled the Government 
to pay off no less than 225 lakhs towards the 
liquidation of the famine loan. During the 
first decade of the present Ruler's reign the 
finances of the State improved still further- 
From 1911 to 1921 the income averaged Rs. 594 
lakhs and the expenditure Rs. 554 lakhs. In 
the prefatory note to his Budget for 1913-1914, 
the then Finance Minister, Sir Reginald Glancy, 
said : " The annual surplus now averages almost 
half a crore (of rupees), though many capital 
works are being financed from revenue. There 
is every reason to anticipate a steady increase 
in revenue as the country is developed by roads, 
railways and irrigation. Of course famine may 
at any time cause a set back to the prosperity 
of the State, but people and Government are 
now better prepared to face such a calamity 
than they were fifteen years ago when the last 
serious famine occurred/' 

In the year 1921 Sir Akbar Hydari took 
charge of the Finance portfolio, and since theii 


he has laboured to maintain uniformity the 
credit of the State, even in times of severe 
economic depression. It is remarkable that 
Hyderabad, without increasing the existing 
taxation, or imposition of any additional 
taxation direct or indirect or, again, without 
resorting to the much abused axe of re- 
trenchment, and in spite of heavy remissions 
of land revenue amounting to nearly Rs. 70 
lakhs, has been able to produce annual surpluses 
over the expenditure. During the last decade 
the current revenue steadily increased from 
about Rs. 750 lakhs per annum to over Rs. 850 
lakhs, actually reaching the high figure of 887 
lakhs in the year 1928-29. 

The preliminary reforms introduced by Sir 
Akbar Hydari in the system of financial 
administration, such as the revision of classi- 
fication of heads of accounts so as to show each 
class of receipts and expenditure in its correct 
proportions, distinguishing extraordinary items 
from ordinary, and capital from service items ; 
the ear-marking of investments under separate 
Reserves, according to the sources from and 
the objects for which they have been 
constituted ; and the introduction of the system 
of departmentalisation, by fixing the grant 
for each department for a triennial period in 
the interests of efficiency and economy, have 
been responsible for substantial surpluses in 
each of the last ten years. During the five 


years from 1925-26 to 1929-30 these surpluses 
averaged 120 lakhs per annum. In the year 
1930-31 a surplus of 11 lakhs was secured ; 
1931-32 yielded a surplus of over 30^ lakhs, in 
spite of the financial stringency being at its 
height during these two years ; and in the last 
year a surplus of 22 lakhs was anticipated. 

These surpluses have been due to a careful 
regulation of public expenditure and the 
avoidance of any large addition to permanent 
recurring liabilities ; and they have enabled the 
State to have large Reserves and Capital 
account, and to utilize them in productive 
schemes of public benefit. The capital outlay 
on the extension of railway lines and the 
construction of large irrigation projects alone 
during the last twelve years approximates 11 
crores of rupees. 

The unfunded debt of the State is only 3^ 
crores against which valuable assets exist in the 
railway lines and irrigation projects, and the 
investments in the different reserves exceeding 
9 crores. " The only amount of debt outstand- 
ing'', says the Finance Member, Sir Akbar 
Hydari, in his last Budget Note, " which is 
uncovered by the amount at present at the 
credit of the Debt Redemption Reserve is 
about 3^ crores payable between 1351-61 Fasli, 
whilst on the other hand not to mention railway 
but only one of the many irrigation projects 


constructed in the last decade the State has in 
Nizam Sagar alone, a capital asset which has 
cost over 43 crores." 

The course of commercial and industrial 
progress never runs smooth ; but in spite of 
periods of mishap and depression there are 
abundant signs to show that Hyderabad is 
advancing steadily, and it will not be an 
exaggeration to say that the State has now 
entered on an era of material prosperity the 
like of which she has never known in the past. 


( Continued ) 


THE necessity for legislative enactments had 
for a long time been felt by the Nizam's 
Government even before the time of Sir Salar 
Jung. The enactment of the Penal and Pro- 
cedure Codes in British India set the example 
to Hyderabad. In 1870 a Committee of Muslim 
lawyers was appointed to frame laws. Its work 
was, however, left unfinished for a time, but in 
1875 several regulations and rules were framed, 
which, with the traditional laws already in 
operation, formed the groundwork of judicial 
administration. In order to have proper codes 
the services of lawyers with English qualifica- 
tions were requisitioned, and Justices Trevor 
and Mahmud were appointed for the purpose. 
Their efforts, however, proved barren, chiefly 
on account of their want of acquaintance with 


the local conditions and requirements. With 
the accession of Nawab Mir Mafeboob Ali Khan 
Bahadur, legislative work was seriously taken 
in hand by the Council of State for whose 
consideration drafts of bilis were prepared by a 
committee of judges. This committee prepared 
a law of civil procedure, which was urgently 
required. This was tentatively given effect to 
at once, pending the enactment of a more 
complete code. The chief measure of the 
Council of State was a Limitation Act, known 
after His Highness' name as "Qanoon-i- 
Mahbubia", which, however, did not come 
into force for some time. A special regu- 
lation for the surveillance and deportation 
of dangerous characters was also enacted, and 
this measure went a long way in purging the 
country of much evil. Municipal and taxation 
Acts were also, among other measures, passed 
at the time. 

As the Council of State ceased to function, 
a Law Commission was appointed in 1890 with 
a puisne judge of the High Court as President 
and a member. A full-time Secretary and an 
establishment were placed at its disposal. The 
President was required to tour in the State 
and lay his notes of inspection before the 
Commission to enable it to prepare and submit 
drafts of laws required in such form as to admit 
of their being finally cast into a Code. These 
drafts were to be accompanied by reports 


explaining the existing laws, the defects 
observed in their working and the proposals for 
removing those defects. The High Court was 
also directed to submit for the information of 
the Commission the drafts of any laws it might 
have under consideration and to communicate 
any matter for which, in its opinion, new laws 
or amendments to existing laws were necessary. 
Other officers also were requested to communi- 
cate to the Judicial Secretary their opinions 
regarding any changes they considered necessary 
in the existing, in this manner complete bills 
of the Penal and the Criminal Procedure Codes, 
of a Probate Act, and of an amendment to the 
Limitation Act were prepared. Bills of a Court 
Fees Act and of a Regulation for Suits to 
which Government might be a party were also 
completed. There were some other measures 
as well which engaged the attention at the time 
of this Commission. 

Before the Law Commission could give a defi- 
nite final shape to these bills, the late Nizam's 
personal attention was invited to the desirability 
of establishing a Legislative Council to carry 
on the work of legislation in a systematic 
manner. Under the scheme promulgated in 
1893 a Legislative Council was constituted, 
consisting of the Chief Justice, a puisne judge 
of the High Court, the Inspector-General of 
Revenue, the Director of Public Instruction, 
the Inspector-General of Police, and the 


Secretary ; and rules were laid down to guide 
its work. The Legislative Council thus consti- 
tuted met only three times under the presidency 
of the late Nawab Fakhr-ul-Mulk Bahadur, the 
then Judicial Minister. 

His Highness soon found the weaknesses of 
such a constitution and set to reform the 
system of legislation, for which he expressly 
declared his great solicitude, with a view to 
provide good and useful laws for his subjects. 
The Legislative Council was then re-constituted 
on an altogether new and reformed basis. It 
was to consist, in addition to the Prime 
Minister who was its President, and the 
Minister of the department to which the 
measure under consideration might belong as 
Vice-President, of three ex-officio members, 
and 12 nominated members, of whom six were 
to be officials and the rest non-officials. The 
six non-official members were to be returned 
in the following manner : Jagirdars and zamin- 
dars were, as one class, allowed to elect 2 
representatives from among themselves, the 
High Court Bar was also privileged to elect 
two of its members, and the Prime Minister 
nominated two persons from the remaining 
non-official classes who could not be organised, 
at the time, into a constituency for the purpose 
of electing their own representatives. 

The Council thus reformed met for the first 
time on 6th May 1894, under the presidency of 


the Prime Minister Sir Vikar-ul-Umra, who 
opened the proceedings with an address, in 
which he laid stress on the honour conferred 
on the members of the Council by their invest- 
ment with the important work of legislation, 
and pointed out the necessity of their giving 
careful and close attention to the proper 
legislation of laws, while promising his own 
unreserved assistance in the onerous task on 
which they were embarking. 

In 1900 a Legislative Council Act was passed 
giving the Council larger and wider powers of 

The Legislative Council as thereafter re- 
formed and continues to function still, after 
the introduction of the Cabinet system of 
government under a President instead of Prime 
Minister as hitherto, consists of a President, 
a Vice-President and 19 members, two of 
whom are extraordinary. The President of the 
Executive Council is the President of the 
Legislative Council as well, and the Member 
whose department is concerned with the bill 
under consideration acts as Vice-President in 
the absence of the President. Of the members, 
eleven are official, three being ex-officio, 
namely, the Chief Justice of the High Court of 
Judicature, the Judicial Secretary, and the 
Legal adviser to His Exalted Highness' 
Government, who also acts as Secretary to the 


Council, Of the remaining, six are non-officials, 
of whom two are returned by the Jagirdars, 
whose hereditary rights are free from encum- 
brances and yield a net annual income of 
Rs. 6,000, elected from among themselves, two 
from the High Court Bar elected from among 
the members of the Bar Association, and two 
nominated by the President one from each 
of the Paigahs in turn, and the other from 
the general public. The two extraordinary 
members are appointed from among persons 
who, by their special knowledge, are likely to 
help the deliberations of the Council. The term 
of membership is two years, the members 
being eligible for re-election or re-nomination. 

No bill or ' motion affecting the public 
revenues, or the religion of any class of His 
Exalted Highness' subjects, or the organisation 
of His Exalted Highness' army, or the relations 
of His Exalted Highness' Government with the 
British Government, or the Act relating to the 
Legislative Council can be introduced without 
the previous permission of the President of the 
Executive Council. While undertaking any 
legislative measure the Council is enjoined to 
keep in view the principles of Muslim Law, the 
tenets of Hindu Shastras, the special laws of 
the communities residing in the Dominions, and 
the customs and usages having the force of law.- 


Any contentious measure, before it becomes 
law, has ordinarily to pass through the following 
stages : 

(1) Notice for leave to introduce a bill, 
followed by its formal introduction and publica- 
tion for criticism. 

(2) Reference of the bill, with any opinions 
received, to a Select Committee, where the 
details are scrutinized, suggestions are con- 
sidered, and the draft is amended. 

(3) Consideration in Council of the Select 
Committee's report, and of any further 
amendments that may be brought forward. 

(4) Motion that the bill, as amended, be 

(5) Submission of the bill to the Nizam as 
passed, followed by its final publication as an 

In the case of non-contentious bills some of 
these steps are omitted. There is often no need 
for waiting for criticism of such a measure or 
referring it to a select committee, and it is 
accepted without amendment. 

No act of the Council, nor any power granted 
to it, can in any way affect the rights and 
prerogatives of His Exalted Highness the Nizam 
as the supreme ruler of the State ; and no bill 
or motion even though passed by the Council can 
have the effect of law unless it has received 
the assent of His Exalted Highness the Nizam. 


It is a noteworthy fact that as long ago as 
the ' Nineties of the last century the Hyderabad 
State created a Legislative Council, with 
non-official element in it, though with a limited 
kind of franchise, practicable at the time, and 
which has the potentiality of development in 
its composition and scope. 


In the Deccan under the suzereinty of the 
Mughal emperors there existed a perfect system 
of judiciary governed by the laws of Islam. 
The independence and impartiality with which 
justice was dispensed in those days are evident 
by the fact that a judge never presented 
' nazrana ' by way of homage to the king, and 
if l>e wanted to do so he would first return his 
robes to the king and then have the honour of 
presenting ' nazrana ', On his return home the 
king sent back to him his robes. 

During the troublous period that followed 
the death of Asaf Jah, the scales of justice 
were seriously disturbed. But there continued 
to be a sort of judicial system in the city of 
Hyderabad and in some of the important 
district headquarters of the Dominions. 

In 1845, during the ministry of Nawab Siraj- 
ul-Mulk, judges were allowed to investigate 
suits in which interest above 12 per cent 


per annum was claimed, and in the following 
year imprisonment was substituted for mutila- 
tion of criminals, and a decree forbidding 
Suttee was also promulgated. Munsiffs and 
Mir-e-Adal were appointed in the districts, and 
their judgments were first considered final, 
but, later on they were required to be submitted 
to the courts in Hyderabad for review. A guide 
was also at this time compiled for the regulation 
of civil and criminal procedure of the district 
courts. But, owing to the frequent changes of 
ministry that followed the resignation of Siraj- 
ul-Mulk, these courts had almost ceased to 
function by the time Sir Salar Jung assumed 
the ministry. 

At this time there were in the city of 
Hyderabad three courts of justice the first 
(Sadrat-ui-Aiiya) in which civil and criminal cases 
were heard ; the second (the Kotwaii), or police 
court; and third ( Dar-ui -Qaza ), the court where 
religious disputes were settled. There was 
nothing of the kind of a fixed judiciary or 
prescribed codes of judicature, and hence 
everything depended on the personal integrity 
of the presiding judge. The proceedings in 
these courts were very brief, and judgments 
were given orally and no records of the cases 
were kept. The people were extremely 
reluctant to have recourse to litigation, for they 
knew how small their chances were of obtaining 
justice. Those who were powerful enough 

refused to submit to these courts, preferring to 
dispense justice in their own way. Important 
cases, again, were settled by direct appeal to 
the Minister. 

In the districts there were no regular courts 
for the administration of civil and criminal 
justice, but in large towns like Aurangabad 
Qazis and Amils heard some of the cases, while 
in the villages disputes were compounded by 
panckayats, consisting of patels and patwaris, 
and other men of the status not lower than 
that of the contending parties. 1 

How Sir Salar Jung improved the judicial 
system of the Dominions has already been 
referred to in a previous chapter. Referring 
to the magistracy of his time, an India Office 
document states : " All these officers are well 
educated, though all have not done well, several 
had received their training in one of the British 
Provinces. Many discharged their duties with 
more r less efficiency, and many have by 
their firmness and uprightness brought credit 
to their department." 2 

Before the year 1884 there was no regular 
system of examination or test for people to 
qualify themselves for the Bar. Nevertheless, 
those who appeared before the Bench had rare 
acumen of common sense and their arguments 
would have ranked today among those of the 

1 Gazetteer of Aurangabad, 1884. 

2 Moral and MaUnal Progress, 1869, p. 117. 


most eminent lawyers. Even women were 
not disqualified from holding briefs, and one 
such woman, who not infrequently appeared 
and argued before Hyderabad courts was 
named Ameer Bee. } In this year Judicial exami- 
nations were introduced, and the first grade 
pleaders were required to wear yellow gowns. 

The late Nizam, among his many reforms, 
also brought about several changes in the 
judicial administration of the State. The High 
Court at the time consisted of a Chief Justice 
and four puisne judges. He ordered that a 
Shastri should be appointed, on a monthly 
salary of Rs. 1,000, to advise the High Court in 
matters concerning Hindu Law ; and that one 
of the judges of the High Court should annually 
make a tour of inspection in the districts and 
submit his report to the High Court. 

With the accession of the present ruler many 
changes of wide importance have been effected 
in the State judicial system. The High 
Court has been granted a Charter defining its 
power and its position in the Government 
machinery, and subsequently a High Court Act 
passed by the State Legislature conferred 
further powers on the High Court. The 
standard of qualification of eligibility for 
judicial service has been considerably raised. 
Reforms based on the report of the Civil Justice 
Committee, which was appointed by Lord 

1 Hakim-ul-Tauwikh, Mohd. Fathullu, p, 53, 


Reading to go into the question of duration of 
civil and criminal cases, have been introduced 
into the State judiciary. One of the law 
examinations in the State the cheapest and 
the lowest in standard called the Judicial 
Examination, which qualified its successful 
candidate both for the Bar and the Bench and 
which was responsible for many incompetent 
persons entering the judicial service, has been 
abolished. The system of inspecting courts 
has also been altered. 

"But all these reforms ", says Nawab Mirza 
Yar Jung Bahadur (Mr. Sami-Ullah Baig), the 
Chief Justice of the High Court of Judicature, 
during whose regime the State judiciary has 
been asserting, more and more, its proper 
independent status in the administration of the 
country, "sink into insignificance before the 
reform of the separation of Judicial from the 
Executive, a reform for which 32 crores of 
subjects of British India have been craving for 
more than a quarter of a century. The main 
credit of the scheme is due to the benevolent 
Farman 1 of our great Sovereign which was 

1 Translated, the Farman reads thus : - 

" For some time past, I have been thinking whether in the adminis* 
tration of this State, the Judicial be separated from the Executive. 
After full consideration, I have decided to introduce this Reform 
into the State, for I believe that it will not only improve the general 
administration but will be conducive to the contentment and happi- 
ness of my beloved subjects. I wish that in separating the above 
duties, the scheme should be so framed as to relieve the Executive 
officers of all those duties which are purely Judicial in their character 
excepting those which pertain to Revenue Law or the trusting of 
which is necessary for the preservation of peace and order under 
Penal Preventive Measures/' 


issued on the 29th Shaban 1339 H. and which 
will serve as a landmark in the judicial 
administration of this State. The fight for 
the separation was originally started by Nawab 
Hydar Nawaz Jung (then Mr. A. Hydari, the 
Judicial Secretary) and by Nawab Nizamat 
Jung Bahadur, the then Chief Justice; and 
when in my first Judicial Report for 1327 F., 
I laid so much stress on the question of sepa- 
ration, I simply took up the cudgels laid down 
by my predecessor in office on account of his 
transfer. To give effect to the intentions of 
His Exalted Highness, the scheme was framed 
and put into effect since 1st Khurdad 1331 F. 
Formerly, besides the District Civil Judges and 
Munsiffs, most of the revenue Officers were 
invested with Judicial powers; under the 
Separation Scheme these powers were taken 
away from 15 first Talukdars, 42 Assistant 
Talukdars and 92 Tahsildars, and in their place 
8 new additional District Judges for Mara- 
thwara and Karnatic districts and 52 new 
Munsiffs for the taluks, where there were 
no Munsiffs and where the Tahsildars were 
exercising judicial powers, were appointed; 
and now in each tahsil there is a Munsiff 
invested with civil and criminal powers. The 
net result is that under the old system there 
were 264 Courts, including Revenue Officers 
exercising judicial powers, but under the new 
system we have got only 172 Courts, a decrease 


of 92 Courts. As the Separation Scheme was 
not enforced in the Sarf-i-Khas ilaka, the 
Revenue Officers of this Ilaka still exercise 
judicial powers there. Now the Judicial 
Department is a self-contained one which can 
be well managed. At the time of the introduc- 
tion of this scheme fears were entertained and 
apprehensions were felt as to its feasibility 
and success ; it was said that the scheme could 
not work smoothly. A few scattered cases 
from the whole Dominions were picked up as 
giving signal for a more serious outburst of a 
coming storm. An alarm was actually raised. 
The Government practically appointed a small 
Commission to go into the question. But 
the moment these few cases were carefully 
examined, the alarm was found to be a false 
one. The storm turned out to be a passing 
breeze due to local conditions and tempers of 
individuals which had nothing to do with the 
scheme itself. Soon after the introduction of 
the scheme, some of the High Court Judges 
and myself made extensive tours in the Domi- 
nions and tried to explain the new position to 
our subordinates exhorting them to rise to the 
occasion. Thanks to the co-operation of the 
high officials of the Revenue Department and 
to the good sense displayed by our Judiciary as 
a whole, I can this day say with confidence 
that the scheme has succeeded beyond my 
expectations. But it came out successfully in 


the very year of its birth and now it has already 
worked for an appreciable period. The most 
critical stage of trial has passed away. Every 
day the prospects of success are brighter and 
clearer. In the course of my tours I probed 
the public mind as well. I believe that I echo 
the sentiment of the public at large when I say 
that they are happier under the new scheme 
and that the Government has secured more 
confidence in the public mind an asset the 
value of which can never be too much ex- 
aggerated/' 1 It is but fair to add that these 
judicial reforms have been so successful because 
they were initiated and put into force under 
the sagacious policy and guidance in this behalf 
of the first President of the reformed Executive 
Council, the late Sir Ali Imam. 

The State has instituted the Jury system 
recently, and the judiciary has been consistently 
following a progressive march on lines much 
the same as in British India. It has maintained 
a high standard of efficiency and a great 
amount of independence, and these have 
contributed to its winning the confidence of the 
public. This fact is a great asset to any 
government, for confidence in a tribunal 
is half the object of justice gained. Emi- 
nent lawyers from British India, like the 
Rt. Honourable Sir Tej Bahadur Sapru, 

1 Judicial Re port > 1331 F. 


Sir N. Sircar, Sir C. P. Rainaswamy Iyer, 
Sir Alladi Krishnaswamy and others have coine 
and argued before the Hyderabad Bench, and 
they have all paid high tributes to the qualities 
of head and heart of the judges sitting on it, 
and also to the members of the local Bar, who 
are no less astute in their knowledge of law 
than their brethren in British Indian provincial 


( Continued ) 

THE system of administration known today 
as ' Local Self-Government ' has had its parallel 
in the ancient Hindu and the medieval Mughal 
systems of village administrations. In the 
Mughal empire each town had its own officer, 
styled the Kotwai, who exercised the functions, 
now classed as municipal. Abu' Fazl gives 
detailed instructions for the guidance of these 
officers in his Ain-i-Akbari. He writes : 

"The appropriate person for this office should 
be vigorous, experienced, active, deliberate, patient, 
astute, and humane. Through his watchfulness and 
night- patrolling the citizens should enjoy the repose 
of security, and the evil-disposed lie in the slough of 
non-existence. He should keep a register of houses 
and frequented roads, and engage the citizens in a 
pledge of reciprocal assistance, and bind them to a 
common participation of weal and woe. He should 
form a quarter by the union of a certain number of 
habitations, and name one of his intelligent subordi- 
nates for its superintendence, and receive a daily 


report under his seal of those who enter or leave it 
and of whatever events therein occur. And he should 
appoint as a spy one among the obscure residents 
with whom the other should have no acquaintence, 
and keeping their reports in writing employ a heedful 
scrutiny. He should establish a separate sarai and 
cause unknown arrivals to alight therein, and by the 
aid of divers detectives take account of them. He 
should minutely observe the income and expenditure 
of the various classes of men, and by a refined 
address make his vigilance reflect honour on his 
administration. Of every guild of artificers he 
should name one as guildmaster, and another as 
broker, by whose intelligence the business of pur- 
chase and sale should be conducted. From these also 
he should require frequent reports. He should see 
to the open thoroughfares of the streets, and erect 
barriers at the entrances and secure freedom from 
defilement. When night is a little advanced, he 
should prohibit people from entering or leaving the 
city. He should set the idle to some handicraft. He 
should remove former grievances and forbid any one 
from forcibly entering the house of another. He 
shall discover thieves and the goods they have stolen 
or be responsible for the loss. He should so direct 
that no one shall demand a tax or cess save on arms, 
elephants, horses, cattle, camels, sheep, goats, and 
merchandise. In every subah a slight impost shall be 
levied at an appointed place. Old coins should be 
given in to bs melted down or consigned to the 
treasury as bullion. He should suffer no alteration 
of value in the gold and silver coin of the realm, and 
its diminution by wear in circulation he shall recover 
to the amount of the deficiency. He should use his 
discretion in the reduction of prices and not allow 
purchases to be made outside the city. The rich shall 


not take beyond what is necessary for their consump- 
tion. He shall examine the weights and make the 
ser not more or less than thirty dams. In the gaz 
(measure) hereinafter to be mentioned, he should 
permit neither decrease nor increase, and restrain 
the people from the making, the dispensing, the 
buying or selling of wine, but refrain from invading 
the privacy of domestic life. Of the property of a 
deceased or missing person who may have no heir, 
he shall take an inventory and keep it in his care. 
He should reserve separate ferries and wells for 
men and women. He should appoint persons of 
respectable character to supply the public water- 
courses, and prohibit women from riding on horseback. 
He should direct that no ox or buffalo, or horse, or 
camel be slaughtered, and forbid the restriction of 
personal liberty and the selling nf slaves. He should 
not suffer a criminal deserving of death to be 
impaled, nor any one to be circumcised under the age 
of twelve. Above this limit of age, the permission 
may be accorded. Religious enthusiasts, calendars, 
and dishonest tradesmen he should expel or deter 
from their course of conduct ; but he should be 
careful in this matter not to molest a God-fearing 
recluse, or persecute bare-footed wandering 
anchorites. He should allot separate quarters to 
butchers, hunters of animals, washers of the dead, 
and sweepers, and restrain men from associating 
with such stony-hearted, gloomy-dispositioned 
creatures." } 

For a long time after the declaration of 
independence by Asaf Jah the Mughal system 
as described above, more or less, continued to 
prevail in the administration of the country. 

i Aj/e-fA&&an, Jarrett's translation, vol. ii, pp, 41-3. 


But the system of municipal administration, on 
the lines of British India, was first introduced 
in the Dominions in the year 1869, when the 
city of Hyderabad was divided into four, and 
the suburbs into five divisions for municipal 
administration, the whole management being 
placed under a Municipal Superintendent. In 
1881 the suburban area was separated and 
formed into the Chadarghat Municipality and 
placed under a separate officer designated 
Municipal Secretary, and likewise the City area 
was placed under another Secretary. In 1903, 
however, the two municipalities were amalga- 
mated and placed under one Secretary. The 
Municipal Committee consisted of a President, 
a Vice-President and 24 members, of whom 12 
were non-officials, 8 officials and 4 ex-officio 
members. In 1905 the number of the non- 
official members was increased to 13, while 
that of the officials was reduced to 5 and 
ex-officio members to 3. 

A new Municipal Act was passed last year 
by the State Legislative Council by which 
the powers of the Municipality have been 
considerably enhanced. Its constitution is now 
based on the advanced Bombay Municipal Act, 
which is closely followed. But the important 
feature about the Hyderabad Act is that the 
schedule of taxation and fines is much lower 
than those found in British Indian Municipal 


The newly constituted Municipality, in which 
vests absolutely the municipal government of 
the city of Hyderabad, consists of a President 
and 36 Councillors, including the Vice-President 
who is elected by the members from among 
themselves. Of the Councillors, 13, including 
1 Parsee, 1 Christian, and 1 representative of 
the Harijans are nominated by Government in 
consultation with their representative organisa- 
tions ; the remaining ten being returned in the 
following manner : -1 by the Sarf-i-Khas, 3 by 
the Paigahs, 1 by the Salar Jung's Estate, 

1 by the Mahraja Kishen Pershad's Estate, 

2 by the Jagirdars, 1 by the Graduates, and 1 
by the mercantile class. The other 13 are 
elected from the 13 wards into which the 
City area has been divided for the purpose of 
elections. The term of office is 3 years, the 
Councillors being eligible for re-election. 

The first elections under the new constitution 
were held in December 1934. They were so 
very lively that a great awakening in the civic 
life of Hyderabad was noticed on the occasion. 

There is a sort of municipal government in 
almost all the towns in the Dominions, and the 
State is contemplating to introduce formally 
the Municipal Act in all such places. 

Local Funds 

About 20 years after the earliest legislation 
for raising rates to be devoted to local objects 


was made by the Government of India in imita- 
tion of the system of local cesses inherited 
from the administration of the Mirs of Sind, 
Hyderabad decided to levy a similar cess. It 
was to be at the rate of one anna per rupee of 
land revenue. Rules for the control and 
expenditure of these funds were passed and 
brought into force in 1887. 

The local cess provides funds for the con- 
struction and maintenance of roads, schools, 
dispensaries, rest houses and other works 
calculated to benefit the inhabitants of the 
districts. Prior to 1928 the one anna cess was 
allocated as follows : - Village police 4 pies, 
Education 2, Roads 2, Medical 1, and General 
improvement 3. In 1928, as a result of the 
Government deciding to pay the village police 
from general revenues, the police cess was 
made over to local funds. The allocation of the 
funds at present is as follows : - General 
welfare ( Rif a-i-Am ) 5 pies, Roads 2, Education 
3, and Medical 2. 

The local fund rules provide for the 
establishment of (1) A District Board at the 
head-quarters of each district, and (2) A Taluk 
Board at the head-quarters of each tahsil, 
controlled by the Revenue Secretariat in the 
city of Hyderabad. A Central Board was in 
existence from 1889 to 1893 when it was 
abolished and its work transferred to the 


Revenue Secretariat. The District Board 
consists of a President and 13 members, of 
whom 6 are officials and 7 non-officials. The 
non-official members are representatives of 
Zamindars, pleaders, and the mercantile class. 
The term of office of the members is 3 years. 
Under the District Boards are the Taluk 
Boards. The Taluk Board consists of 8 
members, of whom 4 are officials and 4 non- 
officials. There are in the Dominions in all 
15 District Boards and 103 Taluk Boards. 

In order to assist the smaller head-quarter 
towns, where much of the expenditure is due 
to their being the capital towns of the districts, 
Government gives permanent grants to them. 
Government is also contributing largely to the 
cost of constructing town water- works. The 
aggregate expenditure since the scheme of the 
improvement of water supply was taken in 
hand has amounted to Rs. 13*78 lakhs. 

The main sources of income in the towns are 

gharpatti (HoUSG tax), roshnipatti (Light tax), and 

barbardaripatti (Toll tax), and one of the minor 
sources is sawaripatti (Vehicle tax). 

The District Boards receive a contribution of 
7 pies from the one anna cess, and they are 
generally in a prosperous condition, having- 
large balances to their credit. This may be 
due to their lack of initiative in undertaking 
programmes of rural uplift work, 


It is interesting to note that the average 
incidence of taxation per head of population in 
Hyderabad is about 12 annas only ; whereas, 
during the year 1929-30, the average incidence 
of taxation, excluding tolls, in the municipal 
towns of the Madras presidency was about 
Rs. 3. The pitch of town taxation in the 
Dominions of the Nizam is extremely low, and 
consequently the people are happier and 



WHEN \ve look back upon the history of the 
administration of the Dominions of Hyderabad 
from the time Nizam-ul-Mulk Asaf Jah felt 
called upon to establish an independent govern- 
ment in the Deccan right up to the present day, 
and follow its travails and vicissitudes and its 
achievements during a period of nearly two 
centuries and over how the paternal rule of 
Asaf Jah restored peace in the country, how 
after his death there followed a period of a 
struggle between the French and the English 
for an upper hand in the control of the State 
policy culminating in a solid alliance with the 
English East India Company by Nizam All 
Khan, how in the time of his successor, 
Sikandar Jah, the British influence became so 
strong that the Prime Minister Raja Chandulal 
turned, so to say, a catspaw in the hands of the 
governor-generals of the Company and kept 
the administration in a hectic condition with 
obviously little regard for the welfare, either of 
his masters or of the people, how the Russell 


Brigade was the outcome of his weaknesses 
which later on was baptised as the Hyderabad 
Contingent, how the bugbear of the continuance 
of its existence depleted the exchequer and 
portions of the State had to be farmed out 
to usurious local money-lenders or to similar 
foreign agencies, preventing the Nizam from 
undertaking any works of public utility, how 
a noble-minded representative of the Governor- 
General, the Resident Sir Charles Metcalfe, 
tried to introduce reforms calculated to set the 
administrative machinery in order, how after 
his retirement Raja Chandulal's maladministra- 
tion returned again to intensify the financial 
agony of the ruler, how even the patrons of 
Raja Chandulal, the Government of East India 
Company, evidently got tired of him and he 
had to resign, how after a brief period of a 
disorganised state of affairs things began 
to improve in the time of the Minister 
Siraj-ul-Mulk, how after him, Sir Salar Jung 
infused a new life into the 'administration, and 
heroically fought every disruptive force, and 
gave to the country peace, order, and a solvent 
treasury, the benefits of which have been 
reaped in an ever increasing measure by his 
successors in office, how the late Nizam, Mir 
Mahboob Ali Khan, of honoured memory gave 
to his people a regular constitution, his 
"Qanuncha-i-Mubarak" with a Cabinet Council 
and a Legislative Council, how finally during 


the blessed reign of the present Ruler pheno- 
menal progress has been achieved in every 
department of administration as we have 
described in the foregoing pages when we 
reflect upon all this, we feel that a Benevolent 
destiny has prevailed upon all the adversity of 
the members of the line of Asaf Jah, and 
rewarded them for their goodness, their charac- 
ter, and their paternal love for a united common 
weal of their people with an ever increasing 
assured position as the benefactors of the 
Deccan which they have so zealously made their 

We cannot predict what further good is to be 
wrought here through the benevolence of this 
dynasty. Things that have been done till now 
point to a great future. There never has been 
a tendency to lag behind in the race of national 
life. Larger visions are swimming into the 
minds of His Exalted Highness' beloved 
subjects. May they be regulated, blessed and 
sanctified with His Exalted Highness' love and 
his usual sanity of judgment ! 






A natural anxiety to secure the best interests of the 
country has invariably led Government to adopt 
measures calculated to enhance the prosperity and 
well-being of the ryots, and the population generally, to 
improve the quality and quantity of local manufactures, 
and to give a healthy impetus to trade. The various 
reforms which have been introduced into the working: 
of the different departments, from time to time, have 
all tended towards the attainment of these objects. A 
comparison of the past administration of the State with 
its present condition will at once exhibit the great 
advances that have been made in this direction and the 
systematic methods ( though still admitting of reforms ) 
which have been introduced of transacting public 
business. In 1281 A. H. a Board of Revenue Majlis-i- 
Malguzari was established to look into the administration 
of revenue and to systematize the working of the 
Stamp, Abkari, Customs and Police Departments. It 
was found that great confusion was caused by the 
want of a systematic division of the territories into 
talukas, districts and divisions. The subject was at once 
taken into hand, and the result was the introduction 


of the Zilabandi system *>., the division of land into 
talukas, districts, and divisions, with well-defined 
boundaries. This work was finished about 1282 Hijri, 
and districts bearing a close resemblance to each other 
in points of usage, customs, language, &c., were classed 
as a division. In the abolition of the Revenue Board 
in 1284 A. H. the opportunity was taken to select from 
its members officers for the post of Sadar talukdar, 
one being placed in charge of each division. Similarly, 
in the Judicial and Criminal Departments, reforms and 
improvements have from time to time been introduced. 
Formerly judicial officers were styled Mir-Adls and 
decided judicial and criminal cases. At the head of 
them was an office called Tashih-i-Talukat, whose 
confirmation in important cases was necessary to give 
effect to the decision of Mir-Adls and Munsifs. But 
when in 1278 A. H. certain districts were restored to 
the Nizam's Government, a separate Judicial Depart- 
ment called Sadar Adalat-i-Azla-i-Mustarida was created. 
Subsequently, in 1280 A. H., the two departments were 
amalgamated under the designation of Sadar Adalat-i- 
Azla-i-Mustaridawa Tashih-i-Talukat. Its office was to 
hear appeals from the decisions of taluka and District 
Judicial Officers, and hence, in 1281 A. H., its name was 
changed to be Majlis Murafa-i-Sani, and subsequently, 
in 1282, to Sadar Murafa-wa-Ehtamam-i-Adalath-i-Tahihat. 
After the introduction of the Zilabandi system, and 
the appointment of tahsildars, talukdars, and Sadar 
talukdars, the judicial and criminal work were also 
made over to them and the name of the head office 
changed to Murafa-i-Azla. A Judicial Board was also 
established to hear appeals from the decisions of any 
Court and the Murafa-i-Azla was absorbed into it. 
Great improvements have also been made in the 
administration of the Police Department. A regular 
Police force did not exist, its duties were entrusted to 


village Chaukidars, Javans of Sibandi and Nizamnt. But 
when, in 1282 A. H., the Zilabandi system was intro- 
duced, a Police force, with necessary number of 
constables at all Chaukies and Thanas, tahsils and 
departments, were organized by the Revenue Board 
then sitting. Up to the end of the year 1283 A. H., 
the Department, as it then existed, was administered 
by the Board. In 1284 A.H., however, a Sadar Muhtamim 
was placed at the head of the Department responsible 
only to the Minister. The Public Works, Municipal, 
Educational and Medical Departments were formerly 
also placed in charge of the Revenue Board. In 1284 
A. H., the Public Works Department was formed into 
a separate charge and entrusted to an officer called 
Sadar Muhtamim or Superintending Engineer. The 
Municipal, Educational and Medical Departments, 
however, continued under the administration of the 
Revenue Board. The reorganisation and the formation 
of a new department requiring a strict supervision 
overburdened the Minister's office and necessitated the 
appointment of a few select nobles of the State 
porsessing abilities to discharge the heavy duties 
entrusted to them, and the confidence of the people to 
carry on the higher administrative functions of the 
various departments. In 1286 A- H., this proposal was 
carried into effect and four Sadar -ul-Mihams with 
Secretaries and Assistant Secretaries, and a complement 
of ministerial officers, were appointed to look after the 
Judicial, tne Revenue, the Police and the Miscellaneous 
Departments, the last comprising the Public Works, 
Municipal, Educational and Medical Departments. 
Government has always been anxious to scrupulously 
maintain all Inam lands, and other gifts, held by virtue 
of lawful gift-deeds and Sunuds. It came, however, to 
the notice of Government that many people were in 
unlawful possession of Government land, and could 


produce no title-deed? in proof of the legitimate grant 
of their so-called Inams to them, and that this had 
entailed heavy pecuniary loss on Government. It was, 
therefore, resolved to organize a separate department 
under the designation of Mahakma-i-Daryaft-i-lnam 
whose duty it would be to ascertain if the occupiers of 
Inam lands had come to be possessed of them by fair 
and legitimate means, and on being satisfied that such 
was the case, to allow them to retain possession of 
them. In the event of there being reason to believe 
that any Inam holder had become possessed of his Inam 
by fraudulent and unfair means, they were to oust 
him after careful and searching enquiry. This rule 
was, however, not to be strictly enforced in the case of 
parties that had been in possession of their lands for a 
considerable length of time. The Department was 
organized in the year 1292 Hijri, and as there was 
much pressure of work, and cases of long standing 
were in arrears, two additional members were appointed 
to conduct the work of the Department about the end 
of the last year. The soundness of this measure has 
lately been amply proved by the fact that a large 
number of cases of long standing have been disposed 
of since the appointment of these new members. With 
the vie vsr of reforming the revenue administration of 
the country another department had to be created. On 
the abolition of the system of farming the revenue to 
private individuals, the administration of land Revenue 
had been organised by the Raiatwari system. Payment 
of the Government demand in cash instead of in kind 
had been introduced, and the division of land into 
different classes for purpose of assessment roughly 
effected. The accurate area of the different holdings 
and the real productive capacity of land being, 
however, unknown, it was impossible to fix a moderate 
and equitable assessment. On the one side the ryots 


complained from year to year of high and inequitable 
assessment, while on the other side the Revenue 
Collectors complained of misappropriation on the part 
of the Patels and Patwaris. It was, therefore, the 
unanimous opinion of the Revenue Officers that, to 
remove the aforesaid defects in the administration, a 
Revenue Survey and Settlement Department should be 
organized. In the year 1294 A. H., ( 1877 A. D. ) this 
Department was accordingly created. The result of 
this measure is that complaints of unequal assessment 
have ceased and that the revenue is collected with 
greater ease and at less cost to the State. 

In the Telingana districts, where tanks are very 
numerous, there were many petty irrigation works, 
which it was not possible for the Public Works Depart* 
ment to supervise. A separate arrangement was 
therefore made in this part of the country, by which 
certain amount was annually placed at the disposal of the 
divisional and district authorities for the maintenance 
and repair of the smaller works. These administrative 
reforms have entailed much additional work upon all 
offices and have greatly increased the number of 
references to the Sadar-ul-Miham and the Minister. In 
this way the experience of the last few years has 
shown that much of the time of the chief officers of the 
administration has been sacrificed to matters of minor 
importance which ought to have been devoted to other 
and higher duties. It is not matter for surprise that 
there was in consequence an increase in the quantity 
of work to be performed by the different departments. 
Subordinate departments and offices being then in their 
infancy, had not been in the beginning granted 
adequate powers, and subordinate officers had therefore 
to obtain the sanction of the Sadar-ul-Miham even in 
petty matters. The consequence was that a consider* 
able portion of the Sadar-ul-Miham's time was wasted 


on correspondence of a trifling nature, which necessarily 
entailed unnecessary delay in the working of the 
different departments, and did not allow the Sadar-ul- 
Miham and Madar-ul-Miham sufficient time for the 
consideration of important measures of reform. The 
Sadar-ul-Miham's offices being separate and distinct 
from that of the Madar-ul-Miham, unnecessary 
correspondence occasionally took place on trifling 
matters, and occupied considerable time. In order to 
remove these defects, it is considered desirable to 
revise and enhance the powers hitherto enjoyed by the 
subordinate offices and to transfer the powers heretofore 
exercised by the Sadar-ul-Mihams to a Board of Revenue, 
a high court and committees, and to delegate to them 
certain powers of administration, appointment and 
promotion. It is also desirable that the offices of the 
Sadar-ul-Mihams be amalgamated with those of the 
Madar-ul-Miham and that the Sadar-ul-Mihams be in 
future styled Mo-in-ul-Mihams, or assistant Ministers, 
to render assistance to the Prime Minister in the 
discharge of his heavy administrative duties. The 
extent to which the Mo-in-ul-Mihams are to exercise 
control in the different departments in their charge is 
to be determined by the Minister in consultation with 
them. Part of the work of the Madar-ul-Miham' s office 
is to be disposed of by Mo-in-ul-Mihams at their own 
discretion and on their own responsibility, while tho 
remainder is to be submitted to the Madar-ul-Miham 
with any.remarks or recommendations that the Mo-in-ul- 
Mihams may have t ) make or offer, and this arrangement 
will, it is expected, allow sufficient time for the 
consideration of administrative changes and reforms. 
It is. therefore, notified for public information that the 
following changes have been made in the existing 
system of administration: 

Irf-That the offices of the Sadar-ul-Mihams are 
amalgamated with those of Madar-ul-Mihams and the 


posts of Secretaries and Assistant Secretaries and 
other establishments connected with them are hereby 
abolished. The Sadar-ul-Miham$ shall in future, by 
virtue of their offices, be styled Mo-in-ul-Mihams and 
shall have the following departments in their charge : 

I. Departments in charge of the Judicial Mo-in-ul- 
Mikam1. Civil Courts. 2. Criminal Courts. 3. Jails. 

II. Departments in charge of the Revenue and 
Financial Mo-in-ul-Miham1. L-ind Revenue. 2. Abkari. 
3. Customs. 4. Survey and Settlement. 5- Forests. 
6. Inam. 7. Watandari Successions. 8. Stamp 
Department. 9. Petty works and repairs in connection 
with Irrigation. 10. Accounts Department. 11. Treasury. 
12. Preparation of the Financial Statement. 13. The 
Mint. 14. Postal Department. 15. Compilation of the 
General Administration Report. 

III. Departments in charge of the Police Mo-in-ul- 
Miham1. Police. 2. Village Police. 

IV. Departments in charge of the Miscellaneous 
Mo-in-ul-Mihaml. Medical Department. 2. Educational. 
3. Municipalities. 4. Public Works. 5. Engineering 
College. 6. Geology. 7. Coal Fields. 8. Workshops and 
Stores. 9. Gazetteer. 10. Translation Department. 
11. Government Printing Press. 

2nd. A Legal Secretary and adviser to the Minister 
has been appointed to revise and reform laws, rules 
and regulations for the guidance of the officers of the 
Judicial, Police and Jail Departments and to pronounce 
on general legal questions. 

3rd. The preparation of statements showing the 
condition of the country, the supervision of the working 
of Mint, Post office, Stamps, Account and General 
Office, Treasury, Revenue Survey and Settlement, and 
the preparation of the Budget and the General 


administration Report, will be carried on by the 
Minister's Revenue Office. 

4th. To look after the revenue affairs, a Revenue 
Board has been appointed with powers superior to ^all 
the other revenue officers. The general administration 
of revenue, the supervision of the working of all 
revenue offices and the appointments, transfers and 
selection of officers of a certain class have been entrust- 
ed to it. The Board will have no power to interfere 
with the office of the Commissioner of Revenue Survey 
and Settlements and the Stamp Office. Both of these 
will be under the direct supervision of the Minister's 
Revenue Office. 

ft/i. To put a stop to the interference of the offices 
of the Sadar-ul-Mihams and Madar-ul-Mihams in the 
working of the Judicial Department, it has been pro- 
posed to appoint a Supreme Council to hear appeals 
from the decisions of the High Court. The Supreme 
Council will be composed of the Minister or his 
Assistant as President or Vice-President, as the occasion 
may require, a few educated nobles of the State and 
officers of high standing as members. The Legal 
Secretary will be the permanent Vice-President of the 
Committee, and will, as in the first instance, receive 
the appeals and issue final orders with the sanction of 
the Committee. 

6th. The powers of the Majlis-i-AUya (High Court) 
have been recast and greater latitude has been allowed 
to them in the selection, appointment and promotion of 
officers of a certain standing. 

7th. Munrifs, Sadar Munsifs and Mir-Adls have been 
appointed in talukas, districts and divisions respectively, 
to decide civil cases. They have been placed under the 
Majlis-i-AUya. The tahsildars, talukdars and Sadar 
talukdars of those talukas, districts and divisions, in 


which this arrangement is brought into force, shall 
have no jurisdiction in civil cases. 

8th. The Judicial office of the Minister will exercise 
the same powers in the Judicial, Police and Jail 
Departments, which it has done heretofore, except that 
all legal questions from the subordinate officers will be 
referred to the Legal Secretary as laid down in para 7. 

9th. The Hyderabad as well as the District Municipal 
Committees, the Gazetteer Office, the Mosques, and 
other such places of worship, the Translation Depart- 
ment, the Government Press, the Medical and the 
Educational Departments will be placed in charge of 
the Miscellaneous Secretary who will exercise the 
powers of the Director of Public Instruction until the 
appointment of the Education Committee or the 
Director of Public Instruction. 

10th. The removal of the Police Sadar-ul-Miham to be 
the Police Assistant to the Minister has necessitated 
appointment of an Inspector-General of District Police. 
The District Jails will also be placed in his charge. 
The office of Divisional Inspectors of Police will be 
abolished, they being no longer necessary. The 
Insp;ctor-General will have no authority over the City 
or Suburban Police (to be amalgamated) and the 
City Jails. 

llth. The Controlling Officers of the Criminal Courts 
will exercise greater powers than heretofore in the 
control and criminal Branch of the Police Department. 
But the internal administration and discipline of the 
Police force will entirely rest with the Inspector- 

J2th. The abolition of the office of the Miscellaneous 
Sadar-ul-Miham, the Secretary to the Sadar-ul-Miham, 
will be designated Assistant Secretary to the Minister 
in the Department of Public Works and, as heretofore. 


will exercise control over the Public Works Department, 
Three officers have been appointed to be always on 
inspection tour in districts to supervise and to report on 
the working of the Department and to remedy the 
defects that they may find in it. The offices of the 
Assistant Secretary to the Minister, Public Works 
Department, and the Assistant Secretary to the 
Sadar-ul-Miham t Public Works Department, have been 
abolished. The Residency Surgeon will be the 
controlling officer of the Medical Department and 
Medical Stores, and will correspond with the Minister 
through the Miscellaneous Secretary. The abolition of 
the office of the Miscellaneous Minister has rendered 
the Education Secretariat unnecessary, but the 
directorate will remain just as it is, and, as mentioned 
above, will be under the Miscellaneous Secretary until 
tfte appointment of an Education Committee or a Director 
of Public Instruction. For the City Municipal manage- 
ment, a Municipal Committee and Municipal Inspector 
have been appointed. District Municipalities will have 
their own committees under the control of the Sadar 
tilukdar. The allotment of allowances to Mosques and 
other religious buildings will be controlled by the 
Municipal Committee. 

13th. The changes proposed in the various depart- 
ments, offices and Municipalities mentioned in this 
Notification will come into force from to-day's date so 
far as they are ready. For other departments the 
reorganisation scheme will be acted upon as soon as 

14th. Although in the Notification, dated 10th 
Rabi-ul-Avval 1299 A.H., principles have been laid down 
with reference to the appointment and promotion of 
Government officers and servants according to seniority 
and merit ; under the new organisation steps have been 


taken to place these principles on the soundest possible 
foundation. As regards appointments and promotions 
in the various office establishments, that is left entirely 
to the opinion of the heads of the offices themselves ; 
but as regards officers, their promotion from one grade 
to another is made dependent on their territory, provi- 
ded their superior officer certifies to their ability and 
good behaviour. When, however, the highest grade in 
any particular class of appointment has been reached 
by an officer, his further promotion will not merely rest 
on seniority, but will have to be supported by special 
claims on the score of distinguished services or excep- 
tional qualifications. With reference to appointments 
of officers, those in the lower grades, such as tahsildars 
and others of similar rank, will be nominated in the 
first instance by the district and divisional Officers and 
their nomination will have to be sanctioned and 
confirmed by the Board of Revenue and Government 
respectively. As regards higher officers, such as second 
and third class talukdars and others of the similar 
official status, their nomination will be made by the 
Board of Revenue and sanctioned by the Government 
Officers; higher than those last mentioned will be 
entirely selected and appointed by the Government. 

IZth. A character and service book will be kept in 
office for subordinate officials, and a civil list for all 
officers with particulars respecting the service, &c., will 
be published periodically. 

16th. The Government has always considered it a 
point of extreme importance that the inhabitants of 
this State should receive education and training of a 
high order, and it has made strenuous efforts at every 
time to bring about this result. It has always earnestly 
desired that the rising generation generally and the 
eons of the nobility and gentry in particular should be 


so trained and brought up as to be able to take an 
active part in the Government of the country. In order 
that this object may be attained. First, that those 
young men who have already received a liberal 
education should now receive an official training in the 
various branches of the administration by being 
attached to some British Province where they would be 
afforded ample opportunities of gaining a knowledge 
of their duties ; and, Secondly, that those young men, 
whose education is either incomplete or defective, 
should be either sent to some suitable college in British 
territory or educated up to the necessary standard at 
Hyderabad. To supervise the education of these 
young men and everything connected with their 
training a committe composed of respectable gentlemen 
and Government officers of high rank and position will 
be appointed, and it will receive every kind of 
encouragement and support at the hands of the Govern- 
ment. What rights these young men so educated will 
be entitled to will be hereafter published. 





IN the year 1892 my late lamented and revered 
father promulgated in a document called "The 
Qanuncha Mobarick " a new constitution for this State. 
In that historic State paper His Highness reviewed the 
principles which had regulated the past administration 
of Hyderabad from a very early period ; noticed the 
defects which existed in the administrative reforms 
introduced by the first Sir Salar Jung and which were 
remedied by His late Highness; and concluded his 
observations in these words : 

"The original form of Government in this State was 
a pure autocracy. This was changed by the first Salar 
Jung to an almost constitutional monarchy ; which, 
through the retrogression of the second Salar Jung 
became an oligarchy. But during the administration of 
Asman Jah the personal Government of his Assistant 
has become so autocratic as to need my immediate 

The prominent defects of the existing system 
demanding immediate attention were next set out in 
detail ; some principles to be specially observed in the 
new administration were emphasised, and the scheme 


of an improved administrative machinery, conducive to 
the peace, contentment, and happiness of hie beloved 
subjects was adumbrated. His Highness declared that 
4 'The character of a Government could only be judged 
by the extent of its contribution to public peace and 
prosperity as well as to a solvent exchequer." All the 
rules framed at the time for the conduct of administra- 
tive work, were deliberately conceived to ensure the 
fulfilment of the above ideals and their observance 
stringently enjoined. 

2. The outstanding features of the new system were 
the institution of a Cabinet Council in place of the old 
effete Council of State, and a Legislative Council for 
the purpose of making laws and regulations with the 
help and advice of men of capacity and experience, 
both official and non-official. The powers and duties of 
the two Councils, as well as those of the Prime Minister 
and the Departmental Ministers, were prescribed. 

3. In 1898, a revised set of rules called " Kanooncha 
Rules" was promulgated by way of elucidating the 
main principles of the "Kanooncha" as modified by 
the light of subsequent experience. The system thus 
revised continued in force until the premature demise 
of my lamented father and even after my accession 
down to 1st December, 1914. 

4. On that date I assumed direct charge of the 
administration ; which, I have ever since been person- 
ally conducting without the aid of a Prime Minister. 
In the transaction of public business I have closely 
proceeded on the lines of the illustrious example of my 
father, so well described in the preliminary portion of 
the "Kanooncha." In one respect, however, I have 
departed from the previous practice. I have conferred 
higher powers on Departmental Ministers by way of 
relieving myself from ordinary routine work. The 


many and varied improvements, made in the adminis- 
tration of Hyderabad down to the present time, have 
fully manifested the wisdom and foresight that inspired 
the rules of the " Kanooncha. " An element of stability 
has been imparted to the condition of the State finances. 
The currency, perhaps a unique institution of this 
State, has been placed on a secure foundation. Well 
considered measures have from time to time been 
adopted and new departments, such as Agriculture and 
Co-operative Societies, have been created to improve 
the material and economic condition of my people. 

5. My intimate association with the labours of 
Government has enabled me fully to appreciate the 
needs and requirements created by a change of times 
and circumstances ; as I have always found in whatever 
advances the welfare of my subjects an incentive to 
further endeavours in that behalf. At the same time I 
am deeply sensible of the many grave problems that 
still await a wise solution. The material resources of 
the State have not been adequately developed. The 
expansion of industries and the advancement of public 
education press for serious attention. 

6. My services in the cause of the good of my people 
do not, however, fully indicate the actual extent of my 
sympathy and solicitude ; and I have anxiously looked 
forward to an opportunity of associating myself with 
further measures in the immediate future to confer on 
my subjects the means of a happy and comfortable life, 
and whatever immunity can possibly be secured from 
the trials and difficulties of periodical famines. One 
important condition of success in the prosecution of 
any large scheme of public good is the adoption of 
administrative methods to the requirements of the 
objects intended, as the principle of continuity in good 
Government is more a matter of political system than 


of the personal attributes of Rulers. In the long course 
of 27 years during which the Constitution of 1892 had 
been in operation, many abuses had, as it is inevitable 
in all human arrangements, crept in and grown up ; 
and many defects and drawbacks have also come to 
light during the period of my discharge of the functions 
of the Prime Minister. 

7. A close examination of the evils and shortcomings 
thus brought to view, has shown in what respects 
approach had not been made towards the ideal which 
my beloved father had so deeply cherished and so 
earnestly prescribed. First in the matter of power to 
cause a great deal of waste of time and energy, is the 
lack of co-ordination and co-operation among the 
various departments, resulting as it has done, in a 
multiplication of labour. Next is the abnormal want of 
promptitude in the disposal of even simple cases. Then 
again, it was found in certain departments that the 
real duties of the Executive Government had been 
incompletely appreciated and the work of other depart- 
ments unduly interfered with, resulting in confusion 
of functions and wasteful correspondence. Another 
serious evil under notice was the habitual omission to 
submit, as laid down in the " Kanooncha " the periodical 
returns of work disposed of by Assistant Ministers. In 
the apportionment of blame, the system in vogue may 
perhaps be as responsible for the resultant evil as other 
causes, but the effect was the same in the sense that it 
was detrimental to the efficiency of the general 
administration. To improve the system so as to bring 
it into conformity with modern requirements was 
probably the object intended in the provision made in 
paragraph 10 of the second part of the "Kanooncha/' 
to frame rules for the working of each department and 
for the regulation of inter-departmental activities, 


The formulation of those rules seems unfortunately 
to have been lost sight of, and the work of administra* 
tion continued on the old lines condemned by time and 
experience. The Cabinet Council, in spite of occasional 
attempts made to rejuvenate it, ceased to play its 
appointed part in the machinery of Government. Its 
collapse has been ascribed to its character merely as a 
deliberative body, without power to enforce its decisions 
and without responsibility for the consequences of their 
practical application. Its virtual disappearance as an 
institution of the State may be looked upon as sugges- 
tive of those conditions of success which ought properly 
to constitute the foundation of every political structure 
intended for the prosecution of great objects, and for 
the realization of large results, connected with. the 
advancement of public welfare. 

8. The evils of the existing system and the best 
means of eradicating them as well as the problem of an 
administrative machinery better adapted to achieve the 
objects which I have cherished for promoting the 
happiness and prosperity of my subjects have for some 
time past engaged my anxious thoughts. I have felt 
the need for relief from the greater portion of the 
duties of the Prime Minister which I have discharged 
for the past 5 years. I have decided upon the abolition 
of the Cabinet Council, and upon a large measure of 
devolution of the labours and responsibilities of 
Government subject to my ultimate control and 
authority. I have it in purpose to employ on a large 
scale institutional rather than personal agencies for the 
better administration of my State. I have accordingly 
resolved that the larger portion of the duties discharged 
in the past by a Prime Minister should in the immediate 
future be transferred to an Executive Council constituted 
by experienced officials and presided over by a 
gentleman of recognised status, character and capacity. 


The enhanced powers conferred on the Moin-ul-Muhams 
and Sadr-ul-Muhams as a temporary measure and the 
powers granted to the Secretary, Legislative Council 
and the Secretary, Judicial Department in connection 
with their office establishments are hereby withdrawn. 
Members of Council designated as Sadr-ul-Muhams will 
now exercise the same powers as Assistant Ministers 
did during the time of the Minister, except in those 
particulars in which such powers have been expressly 
modified by the orders now promulgated in Schedules 
A. B. and C, and the rules of business attached thereto. 
The Legislative Council will continue to work under 
the existing rules until they should be modified. 

9. The Executive Council shall for the present 
consist of eight Members (seven ordinary and one 
extraordinary ) exclusive of the President. I shall be 
willing to consider the desirabijity of increasing the 
strength in the event of a need for doing so. One of 
the members will be appointed as Vice-President to 
discharge the functions of the President during his 
absence. The records of cases whose disposal falls 
beyond the power of a Member in Charge shall with 
the opinion of Fuch Member be sent by the Secretary 
of the Department concerned to the Piesident who will 
deal with the same and return them to the Depart* 
mental Secretary through the Member in Charge after 
they have been so dealt with. The President will have 
power to dispose of all matters detailed in Schedule 
"A" in accordance with the rules in force on the 
subject, with or without reference to the opinion of the 
other Members as he may choose. When a matter 
covered by Schedule " B " is brought before the Council 
by the President its decision by the majority of votes 
thereon shall be deemed to be the final order of my 
Government to be issued immediately in the name of 
the President in Council/' When the President finds 


himself in a minority he may at his discretion refer the 
case with his own opinion for my orders and pending: 
such orders defer action. The President shall also refer 
to the Council all such matters as are detailed in 
Schedule " C " and shall submit the result of the dis- 
cussion, the opinions of the Members, and his own 
observations for my final orders. 

10. In the matter of appointments I have steadily 
kept in view the claim of the subjects of the State who 
should have preference over outsiders. Their claim is 
legitimate and must always be given unqualified 
recognition so long as the requisite fitness and ability 
to discharge official duties are forthcoming. In special 
circumstances however where men of special qualifica- 
tions are necessary a departure from this general 
principle may be made. If such necessity arises my 
sanction should be obtained before such appointment 
is made. 

11. All rules or regulations that are now in force 
but are inconsistent with the rules now promulgated 
are hereby repealed to the extent they are so 
inconsistent. Nothing contained herein or in the rules 
framed hereunder shall in any manner whatsoever 
affect my prerogatives or absolute power of Veto ; and 
these I shall exercise at such time and in such manner 
as I deem proper. 

12. In proclaiming this my Firman to confer on my 
beloved subjects, as far as may bp, the benefits of 
a measure of devolution of power and authority 
compatible with the requirements of good Government ; 
to extend the scope and to improve the nature of 
administrative responsibilities in the public servants of 
the State; to create more frequent opportunities of 
co-operalion between the official and non-official classes 
of my people in the common work of promoting the 


happiness and prosperity of all, no less than the success 
and credit of the Government of this ancient State, I 
exhort all my public servants to bring to the perfor- 
mance of their allotted work a high sense of duty and 
patriotism, a sustained spirit of zeal and interest, and 
to realise every one, official or non-official for himself, 
that he can to the extent of his opportunities contribute 
to the peace, prosperity and contentment of my people. 


Abu'Fazl, 126. 
Afzal-ud-Daula, 61, 68. 
Ain-i-Akbaii, 126. 
Ali Imam, Sir, 94, 95, 96, 

97, 124. 
Alum, Mir, 13, 14, 17, 18, 


Ameer Bee, 120. 
Amjad-ul-Mulk, 50. 
Arastu Jah, 11, 13. 
Asaf Jah, Nizam-ul-Mulk, 

vii, ix, 1, 2, 3, 4, 5, 6, 7, 

117, 128, 134. 

Asman Jah, Sir, 74. 77, 78. 
Auckland, Lord, 36, 49. 
Aurangzeb, Emperor, 3. 
Aurangabad, 11, 56, 62, 


Basalat Jung, 7. 
Bashir-ud-Daula, N a w a b, 


Bentinck, Lord W., 32, 34. 
Berar, 5, 56, 62, 63, 95, 


Bhagnagar, 4. 
Bidar, 56, 62. 
Bijapur, 4, 66, 62. 
Blunt. W. S., 73, 75. 
Bombay Presidency, 105, 

Municipal Act, 129. 
Briggs, 22. 

Burajn-ud-din, 59. 
Burhanpur, 3, 4, 7. 

Cabinet Council, 79,80,89, 
91, 135. 

Calcutta, 78. 

Cameron, Major, 35. 

Carnatic, 1- 

Cauvery, the, 4. 

Chandulal, Raja, 14, 17, 
18, 20, 22, 23, 25, 28, 30, 
31, 34, 35, 36, 37, 38, 39, 
52, 53, 55, 134, 135. 

Chicaccle, 5. 

Circars, Northern, 6. 

Colonisation Scheme, 96. 

Contingent, ix, 18, 22, 23, 
29, 37, 42. 43, 49, 51, 54, 
56, 57, 63, 67, 72, 135. 

Corporation, Hyderabad 
Municipal, 98. 

Council of State, 76, 79, 

Currie, William, 22. 

Daftar-i-Mal, 19. 
Daftari-Diwani, 19. 
Daftar-i-Mulki, 81. 
Dar-ul-Insha, 19. 
Dar-ul-Qaza, 19, 118. 
Deccan, 1, 2, 3, 4, 66, 117. 
Delhi, viii, 2, 3, 9, 



Khan, Shah Nawaz,5, 6. 
Khan, Mir Musa, 8, 
Khan, Mahdi Ali 

Nawab Muhsin-ul-Mulk, 

East India Company, ix, Khan, Laiq Ali, Nawab, 

73, 74, 76. 

Khalsa, 9, 10, 50, 54. 
Kishen Pershad, Maharaja 

Sir., 81, 85, 97. 
Kokan, 61. 
Kotwal, 9, 126. 

Kotwali, 19, 118. 
Krishnaswamy, Sir Alladi, 


Kurshid Jah. Nawab, 76. 
Kurnool, Nawab of, 5. 

Bharaseo, 63. 
Dighton, 47, 50, 58. 
Dufferin, Lord, 78. 
Dupleix, 5, 11. 

11, 22, 40, 47, 134, 135. 
England. 66. 
Executive Council, 91, 93, 

95, 99, 114, 115, 124. 

Fakhr-uI-Mulk Bahadur, 

Nawab, 113. 
Falaknuma Castle, 86. 
Faridoon Mulk Bahadur, 

Nawab Sir, 97. 
Fraser, General, 36, 47,49. 
Fraser, Stuart Mitford, 86. 

Ghanimbab, 20. 
Glancy, Sir Reginald, 102, 

Goldsmid, 64. 

Hardinge, Lord, 46, 85. 
Hastings, Lord, 22, 24, 28. 
Hatbazari, 20. 
Hydari, Sir Akbar, 102, 

106, 107. 108. 
Hydar Nawaz Jung, 

Nawab, 122. 

Inams, 10, 98. 
Jamiat-i-Zilladari, 60. 

Kaye, Sir John, 24. 
Khan, Khuda Banda, 3. 
Khan, Anwarulla, 3. 

Lauder-Brunton, Dr., 82. 
Legislative Council, 79, 80, 

100, 112, 113, 114, 115, 

117, 129, 135. 
Life of Lord Metcalfe, 24. 
London, 34. 
Low, Col., 59. 
Lushington, Sir J., 47. 

Madras, 22. 

Presidency, 133. 
Mahrattas, vii, ix, 2, 4, 8. 
Mahboob Ali Khan, Nawab 

Mir, 68, 82, 84, 106, 111, 


Mahmud, Justice, 110. 
Majlis-i-Malguzari, 63. 
Martin, 30, 

Masulipatam, ix, 4, 61. 
Meade, Sir R., 65. 
Metcalfe, Sir C., 141 18, 

25, 28, 29, 30, 31, 32, 34, 

66, 135. 

Khan, Shaista, Amir-ul- Mirza Yar Jung, Bahadur, 

Umra, 3. 

Nawab, 121. 




reforms, 89. 
Moral and Material Progress, 

Report of, 64. 
Munh-ul-Mulk, 17, 18, 38, 


Muzaffar Jung, 5, 7. 
Mysore, 1, 48, 72. 

Nadir Shah, viii. 

Naldrug, 63. 

Narender Pershad, Raja, 


Nasir Jung, 3, 5, 6, 7. 
Nasir-ud-Daula, 32. 
Nerbudda, the, 4. 
Nizam All Khan, 7, 8, 10, 

11, 12, 13, 134. 
Nizamat Jung, Bahadur, 

Nawab, 122. 

Osman Ali Khan Bahadur, 
Nawab Sir Mir, 84. 

Paigah, 9, 10, 50, 51, 53, 

Palmer, William, 22, 39, 


Persia, viii. 
Pertabvant, Raja, 8. 
Pinhey, AF., Col., 85. 

Qanun-i-Mahbubia, 111. 
Qanuncha-i-Mubarik, 79, 

92, 135. 
Qazi, viii, 9. 

Raghunath Dass, Raja, 5. 
Rahdari, system of, 2, 20. 
Raichur, 63. 
Ramdass, 5. 

Ram Buksh, Raja, 39, 46, 
50, 52. 

Ramaswamy Iyer, Sir C.P., 


Reading, Lord, 121. 
Regency, 68. 
Reymond, 11. 
Ripon, Lord, 74, 75. 
Rukn-ud-Daula, Nawab, 8, 

10, 11. 
Rumbold, SirT., 22. 

Sir W., 22. 
Russell Brigade, 18. 
Russell, Henry, 18, 19, 23, 


Sadarat-ul-Aliya, 19, 118. 
Sagar, Nizam, 100, 109. 
Salabat Jung. 5, 6, 7. 
Salar Jung. Sir 57, 58, 59. 

60. 65, 66, 67, 68, 72, 73, 

78, 81, 92, 102, 103, 105. 

110, 118, 119. 135. 
Salar Jung, III, 85, 86, 87. 
Saunders, C.B., 66, 104. 
Shams-ul-Mulk, Nawab, 11. 
Shams-ul-umra, Nawab, 7, 

50, 53. 68, 74. 
Sikandar Jah, 13, 30, 31, 

Siraj-ul-Mulk, Nawab 39, 

46, 50, 55, 57, 69, 117, 

118, 135. 

Sind, Mirs of, 131. 
Sircar, Sir N., 125. 
Syed Lashkar Khan, 6. 
Sydenham, Captain, 13. 

Tapti, the river, 1. 

Tej Bahadur Sapru, Rt. 

Hon. Sir., 124. 
Temple, Sir R. 66. 
Trevor, Justice, 110. 
Trichinopoly, 1. 



University, Osmania, 98. 
Vernacular, 101. 

Vikar-ul-Umra, Nawab Sir, 

76, 78, 81, 114. 
Viqar-ud-Daula,Nawab, 11. 
Vithal Sundar, 8. 

Wali-ud-Daula Bahadur, 
Nawab, 97. 

Walker, Sir George Casson, 

102, 106. 
William Palmer & Co., 22, 

Wingate, Sir G., 64. 

Yusuf Ali Khan Bahadur, 
Nawab, 85. 

Zillabandi. 63.